RBA, Budget and Election Announcement!
It was a big week for Australian markets last week with a raft of data, a potential rate cut by the RBA, the 2016-17 Federal Budget and the likely announcement of an early 2 July Double Dissolution Election.
- Another busy week on the cards in Australia. NAB narrowly expects a rate cut by the RBA tomorrow, just before the Budget is announced tomorrow night.
- This week we summarise the main measures rumoured to be in the Budget. These include infrastructure spending, medium-term company tax cuts, tighter rules on multinational taxation, modest adjustments to the $80,000 income tax threshold and the tightening of concessions for superannuation for higher income earners.
- Overall, the Government is expected to produce a budget that seeks to continue to slowly improve the budget over the medium term.
- There are also important US data releases this week, which will likely keep two US rate rises in play for this year, slightly more than currently expected by US markets.
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