The Australian government is preparing to revise its economic forecasts downward in the upcoming mid-year budget update, signaling expectations of slower growth and rising unemployment. Economists have cautioned about a challenging economic outlook, while recent comments from a senior Reserve Bank official suggest another potential interest rate increase could be imminent. The treasurer will highlight how higher inflation and tighter monetary policies are straining households and weakening domestic activity, particularly in the labor market. These adjustments reflect growing concerns over the near-term economic trajectory.
Treasury is revising all the numbers for the mid-year update as economists warn of a difficult six months aheadGet our new political email, free app or daily news podcastJim Chalmers has revealed December’s mid-year budget update will project weaker growth and higher unemployment, as economists warn of a difficult six months ahead for the Australian economy.Two days after a senior Reserve Bank official foreshadowed the potential for another interest rate hike in under two weeks’ time, the treasurer in a speech on Friday morning will say “higher inflation is putting people under pressure, tighter monetary policy is weighing on domestic activity, and we can see that in the softening of the labour market”. Continue reading...
