Open account

Treasurer Chalmers Warns of Weaker Growth and Rising Unemployment Ahead of December Budget Update

Australia's economic outlook is deteriorating as the Treasury downgrades its projections ahead of December's mid-year budget update. Australian Treasurer Jim Chalmers warned of slower economic growth and rising joblessness amid sticky inflation, tight monetary policy, and cooling activity. Unemployment reached 4.7% in September, a near five-year high. Meanwhile, global benchmark crude oil climbed to $113 per barrel amid Middle East tensions, increasing retail petrol prices by 60 cents per litre. Despite weakening economic momentum, markets have priced in a nearly 60% probability of an RBA interest rate hike on November 3.

Category

AUD/USD

Sentiment

Bearish

Event

Macro data

Reading time

1 min