Reserve Bank of Australia assistant Gov Hunter:
- Higher US tariffs will put a drag on the global economy
- Assuming weaker global growth environment will moderately dampen prices for tradable goods
- Higher uncertainty can lead to declines in investment, output and employment
- Higher global uncertainty has a large negative effect on Australian business investment
- Australia’s exporters are relatively well-placed to weather the storm
- Assuming Chinese authorities will support their economy through fiscal stimulus
That China assumption, I guess … but the experience so far has been the support measures have only been piecemal.
There could be more coming:
This article was written by Eamonn Sheridan at www.forexlive.com.
