5 in 5 with ANZ
5 in 5 with ANZ
Thursday: Bracket creep helps Australia's Budget
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Thursday: Bracket creep helps Australia's Budget

Australian Federal Budget nearing surplus on firm economy, mining royalties and bracket creep; NZ GDP seen slowing as RBNZ rate hikes bear down on consumers; Khoon Goh on Vietnam's next growth engine

Global markets are in animated suspension this morning ahead of the Fed’s decision at 6am Sydney/Melbourne time. Australia’s budget is healthier after solid income tax and mining royalty growth.

In our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh explains how Vietnam’s economy can keep growing, even after its demographic dividend has ended.

5 things to know

  1. Global markets are on tenterhooks for the Fed’s decision due after 6am Sydney/Melbourne time. Markets expect a hold, but will be watching the dot plot to see whether market expectations are too far ahead of the Fed.

  2. Australia’s Federal Budget has improved sharply on stronger tax revenues, which may create room for fiscal stimulus next year, says ANZ Rates Strategist Jack Chambers.

  3. Bracket creep and mining royalties are helping to drive the Budget improvement.

  4. The RBNZ’s rate hikes are bearing down on NZ GDP. Q3 data due later today is expected to show a slowing to 0.3% from 0.9% in Q2, says ANZ NZ Chief Economist Sharon Zollner.

  5. Investors hoping for more stimulus from China’s Central Economic Work Conference were disappointed, says ANZ China’s Senior Rates Strategist Zhaopeng Xing.

Cheers

Bernard

PS: Look out tomorrow morning for analysis of the Fed’s decision and NZ economic growth.

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5 in 5 with ANZ
5 in 5 with ANZ
A daily podcast hosted by Bernard Hickey that gives you the five things you need to know about the global economy and markets in under five minutes. Plus a deep dive into emerging trends and issues featuring ANZ's global team of experts.