S&P with their take on the Australian economy - 24 January 2018
- Sovereign credit ratings benefit from country's strong institutional settings, resilient economy, flexible monetary policy, and low government debt
- Negative outlook reflects risks to government's fiscal consolidation plan and risks to financial stability
- There's still uncertainty around ability of budgetary position to return to surplus by early 2020s
- Potential for wage growth remains low and poses downside risks to fiscal revenue
- Economy to be highly vulnerable to any major shift in offshore capital flows
Highlighting some doubts on the budget deficit. And they also mention some concerns if home prices fall abruptly, with it having negative consequences to financial stability.
AUD/USD now at 0.8092 - not really moving, just off highs of 0.8106 earlier.
