Finance Minister Gallagher: Australia is facing economic challenges
|Australian Finance Minister Katy Gallagher voiced her concerns over the economic challenges being faced by her country after the Bank for International Settlements (BIS) reported risks for a global stagflationary scenario.
Key quotes
“The case for stagflation was a worst-case scenario, but where was no doubt the Australian economy faced challenges.”
“We have got cost of living going through the roof, we have got rising interest rates, we have got wages still stagnant and that is presenting some real challenges to people,”
“The job for government is to look at how we can make our policies, our sensible investments drive the productive capacity of the economy.”
“They are things that will help the economy in the long term without adding to inflation in the short term.”
Also read: BIS urges decisive wave of global rate hikes to stem inflation
Market reaction
Amid increasing risks of a recession, AUD/USD remains under pressure on the 0.6900 level. Although the rebound in the S&P 500 futures is helping the aussie stage a modest bounce from 0.6907 lows. The pair is now trading at 0.6933, still down 0.24% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.