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Budget repair will worsen economic slowdown

The Treasurer resisted the temptation to spend the tax windfall from high commodity prices in today’s Budget. But with high inflation lifting payments by at least as much as receipts, the government now expects a larger structural deficit. The resulting fiscal restraint adds to our conviction that GDP growth will slow more sharply next year than most anticipate.

Australia Drop-In: We’ll be discussing Australia’s monetary policy outlook shortly after the Q3 CPI release on Wednesday, 26th October. Register here to join the online briefing.

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