Government remains determined to achieve surplus
Mid Year Economic and Fiscal Outlook
It remains a stretching forecast, but the Government is by no means abandoning its goal of getting the budget
back into balance. While the goal of reducing the budget deficit is laudable, it is by no means essential for
Australia to push its accounts back into surplus. Still, if the Government is unshaking in its resolve to achieve a
small surplus, it means that the Reserve Bank will have to maintain easy monetary policy settings. We continue to pencil in a 25 basis point rate cut at the November RBA Board meeting.