Mortgage Arrears | Australia withstands GFC Aftershocks
It is worthy to note that despite the strains the Global Financial Crisis (GFC) has brought – even after four years, Australia can absorb the aftershocks.
This is perhaps due to the increase in Australia’s GDP and low inflation as further asserted by TD Securities Head of Asia-Pacific Research, Annette Beacher. She based her assertions on their Monthly Inflation Gauge in August.
According to the monthly gauge report, in the last 12 months to July, the mean rose by just 1.4%, the lowest so far since they started monitoring. The low GDP of the quarter was brought about by the strong private consumption and a strong rebound from the trade sector, she further reiterated.
In an article at the August issue of the Australian Broker Magazine , Beacher has further stated, “This is an economic sweet spot and certainly backs up RBA Governor Steven’s glass half-full chirpy theme of late. Australia is well-placed to absorb global shock.” She likewise added, “Given the favourable inflation outlook, the RBA is in the enviable position to have the tools to ease the pressure if required, although by how much and when depends on what lies ahead for the troubled European Union.”
This is a significant turn and great outlook for everybody other than those who are looking for the reduction of Home Loan and Business Interest Rates. Let’s just hope that inflation continues to go down and the GDP significantly rises so as to continue the cushion these events bring despite the GFC.
We would like to Acknowledge- Australian Broker August Magazine
This is perhaps due to the increase in Australia’s GDP and low inflation as further asserted by TD Securities Head of Asia-Pacific Research, Annette Beacher. She based her assertions on their Monthly Inflation Gauge in August.
According to the monthly gauge report, in the last 12 months to July, the mean rose by just 1.4%, the lowest so far since they started monitoring. The low GDP of the quarter was brought about by the strong private consumption and a strong rebound from the trade sector, she further reiterated.
In an article at the August issue of the Australian Broker Magazine , Beacher has further stated, “This is an economic sweet spot and certainly backs up RBA Governor Steven’s glass half-full chirpy theme of late. Australia is well-placed to absorb global shock.” She likewise added, “Given the favourable inflation outlook, the RBA is in the enviable position to have the tools to ease the pressure if required, although by how much and when depends on what lies ahead for the troubled European Union.”
This is a significant turn and great outlook for everybody other than those who are looking for the reduction of Home Loan and Business Interest Rates. Let’s just hope that inflation continues to go down and the GDP significantly rises so as to continue the cushion these events bring despite the GFC.
We would like to Acknowledge- Australian Broker August Magazine