IMF preliminary statement on Australian report
- there are risks that Australian recurrent budget forecast will not be met
- Australia risks lower potential growth without reform
- banks have room to raise capital ratios
- APRA lending curbs should succeed, may need intensifying
Says James Daniel, mission chief for Australia
"We think interest rates where they are today are broadly appropriate, however we're implicitly suggesting an easing bias
We see the risks to growth as somewhat tilted to the downside"
IMF on the same page as the RBA it appears and while it hasn't updated forecasts for growth and inflation its says its analysis for the next couple of years is broadly similar to the RBA and Treasury
AUDUSD down to 0.7716 session lows from 0.7734
