Fitch confirms Australia at AAA, outlook 'Stable'

Dhwani Mehta FXStreet

The US-based Fitch ratings is out with its credit review report on the Australian economy, confirming the sovereign rating at AAA with a Stable outlook.

Key Highlights:

“Momentum in the Australian economy has decelerated in the near term, but still compares well with AAA peers.

The slowdown of the Australian economy is due in part to spillovers from the weakening housing market on dwelling investment and household consumption.

It expects ongoing housing market correction in Australia to remain orderly.

Forecasts Australia's debt-to-GDP to begin a downward trajectory in light of the improvement in fiscal performance.

Australia's banking system is well positioned to manage a housing market shock.

Australia's monetary policy is likely to remain accommodative to support economic growth and employment.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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