The global economic slowdown and market turmoil is a cause for concern for Australian policy makers.
The RBA will soon need to consider cutting interest rates based on low inflation, rising unemployment and general economic weakness. For the budget, Treasurer Joe Hockey is facing revenue write-downs from the disinflation funk that is hitting the local economy at the same time the government is ramping up spending. When the Mid Year Economic and Fiscal Outlook is released in December, the budget deficits will be bigger than forecast at Budget time.
The clip below is me talking to Chris Hammer from Fairfax Media on 16 October.