Architects of the float of Australia’s dollar, trading at a similar level to when exchange controls were lifted 30 years ago, say the currency must devalue and economic reform be renewed to avert a recession.
Australia’s economy probably shrank last quarter by the most in two decades as floods inundated coal mines and farmland, a contraction the central bank sees as temporary before growth rebounds in the second half of the year.
The bond market is telling Reserve Bank of Australia Governor Glenn Stevens he doesn’t need to raise the developed world’s highest interest rates any time soon to curb a lending surge and the fastest inflation since 2006.
Travis Marks, a 24-year-old with no college degree, is hitting pay dirt as Australia’s mining bonanza fuels demand for workers. Already making triple the nation’s average salary, he expects to get even richer.
Signs Australia’s economic expansion is spreading from the mining industry to households boosted the case for the nation’s central bank to resume the Group of 20’s most aggressive round of interest-rate increases.
Australia’s government will end 23 years of spending growth to ease inflation from the biggest mining-investment boom in the nation’s history and plans measures to help companies hurt by a record-high currency.
Australian exports excluding farm goods surged by the most in almost three decades in April as shipments of iron ore and coal to China pushed the trade balance to a surplus for the first time in 12 months.