Australia’s central bank should maintain easy policy settings as a mining-investment slowdown and a local currency about 10 percent overvalued drag on economic growth, the International Monetary Fund said.
Australia’s Treasurer Wayne Swan said the local currency’s strength reflects the health of the economy, and said the government supports a floating currency. Swan made the comments in an e-mailed statement today.
With the Australian dollar’s rise, Sydney is now an expensive place to dine by global standards. Thankfully, creative chefs, fresh ingredients and spectacular settings mean diners aren’t short changed.
Australia’s central bank said the currency’s decline and past interest-rate cuts meant its policy setting was appropriate even as it maintained room for future reductions, according to minutes of its July 2 meeting.
Macquarie Group Ltd.’s debt rating was placed on review for possible downgrade by Moody’s Investors Service, which cited the company’s earnings outlook against a backdrop of “protracted weakness in the financial markets.”