There are a few things hanging around today as I write this blog. The Mid Year Economic Forecasts (MYEEFO) are going to be released which will project a further worsening of the forecasts and then the politics will take over. Needless to say, this is not the best news that the Treasurer wishes to deliver to the Australian people on the eve of Christmas. We expect a credit downgrade on the back of the MYEEFO which will mean rising cost of borrowings for new debt and a sad exit from the prestiugious AAA club - which will now have only 6 jurisdictions.
Inflation is running low, GDP growth is low and we do not expect a recession with the growth numbers set to go into positive territory for the current quarter. Commodity prices are on the rise which is good but the price of oil has jumped. Unemployment is steady but weak wages growth means that the Government's coffers are not full. The Aussie is set to remain at the current level between 73 and 75 cents and cash rate is likely to be steady. Housing sector continues to attract comments about the bubble - but the overall report card for Australia is not all bad news.
We shall return on Monday 16 January 2017 with a full review of the year ahead. This is our last weekly blog for 2016. Let me take the opportunity to recognise the invaluable contribution of all our partners and service providers. For our customers, we value your support and the relationship and together we will embrace the challenges of the future.
In the mean time, let us rejoice, share in the spirit of the festive season, let us give, forgive and spend some time with our loved ones. Let the new year bring in joy, happiness and peace.
Best wishes
Inflation is running low, GDP growth is low and we do not expect a recession with the growth numbers set to go into positive territory for the current quarter. Commodity prices are on the rise which is good but the price of oil has jumped. Unemployment is steady but weak wages growth means that the Government's coffers are not full. The Aussie is set to remain at the current level between 73 and 75 cents and cash rate is likely to be steady. Housing sector continues to attract comments about the bubble - but the overall report card for Australia is not all bad news.
We shall return on Monday 16 January 2017 with a full review of the year ahead. This is our last weekly blog for 2016. Let me take the opportunity to recognise the invaluable contribution of all our partners and service providers. For our customers, we value your support and the relationship and together we will embrace the challenges of the future.
In the mean time, let us rejoice, share in the spirit of the festive season, let us give, forgive and spend some time with our loved ones. Let the new year bring in joy, happiness and peace.
Best wishes
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