Australian Budget and Economy

Posted: May 14, 2014 in Uncategorized
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So what are the most likely outcome for the economy?

– short term weaker economy, but stronger in the long term

-cash rate low for a longer period

– weaker Australian Dollar

-slightly more inflation (but weaker consumer spending save us from rate hike)

It is a benign Budget for equity investors (specially miners, construction), with some issues for consumer discretionaries, healthcare (pathology, not research)

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