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.


Key Points:

  • 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.

For full analysis, download report

For further FX, Interest rate and Commodities information visit nab.com.au/nabfinancialmarkets