This week’s Australian Budget injected another huge dose of fiscal stimulus. Some of the measures may not be quite as effective as those in earlier rounds of stimulus but taken together Australia’s fiscal response is one of the most aggressive in the world. Meanwhile, the RBA this week signalled that further monetary stimulus may be unleashed before long – we think it will pull the trigger at its next meeting in November. With both fiscal and monetary policy being loosened further, we believe that Australia’s economy will expand faster than most expect next year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services