22 Oct 2013
Flash: Will AUD react to its governments debt ceiling increase? – TD Securities
FXstreet.com (London) - Research teams at TD Securities noted the introduction of legislation to lift Australia’s debt ceiling.
Key Quotes:
“The government is introducing legislation to lift Australia’s debt ceiling from $A300b to $A500b to allow for a significant fresh buffer for future borrowings”.
“Completely as expected since the May Budget was passed. It will pass into law, with maybe a bit of grumbling, unlike the recent US experience”.
“$A500b right now is equivalent to 30% of GDP, on par with commodity currency stalemate NZ. Let’s hope some of that debt is to fund long overdue infrastructure”.
Key Quotes:
“The government is introducing legislation to lift Australia’s debt ceiling from $A300b to $A500b to allow for a significant fresh buffer for future borrowings”.
“Completely as expected since the May Budget was passed. It will pass into law, with maybe a bit of grumbling, unlike the recent US experience”.
“$A500b right now is equivalent to 30% of GDP, on par with commodity currency stalemate NZ. Let’s hope some of that debt is to fund long overdue infrastructure”.