Connect with us

Economy

Australian budget focused on lowering unemployment, treasurer says By Reuters

Published

on



By Colin Packham

SYDNEY (Reuters) – Creating jobs is the focus of Australia’s annual budget set to be unveiled on Tuesday, Treasurer Josh Frydenberg said, as Canberra seeks to revive an economy ravaged by the COVID-19 pandemic.

Australia is grappling with its first recession in three decades, with unemployment rising to a 22-year high in July after authorities imposed lockdown measures to slow the spread of the coronavirus.

The government has pledged A$314 billion ($225.8 billion) of fiscal stimulus to soften the economic blow, and Frydenberg said the budget will include sweeteners aimed at lowering unemployment.

“I will lay out our economic recovery plan to rebuild the Australian economy,” Frydenberg told reporters in Canberra.

“It’s all about helping those who are out of a job get into a job. It’s all about helping those that are in work, stay in work.”

Australia’s central bank left its cash rate at a record low of 0.25% on Tuesday, as expected, and said it continues to consider how additional easing could support jobs as the economy reopens.

Local media reported Australia plans to accelerate income tax cuts to come into force in 2022.

While declining to confirm the tax cut plans, the government said the budget will include a commitment to spend A$1.2 billion to pay 50% of the wages of 100,000 new apprentices or trainees over the next 12 months.

“This new wage subsidy gives businesses certainty to hire and provides a career path,” Prime Minister Scott Morrison said in an emailed statement.

Only those under 35 will be eligible for the scheme as Australia targets soaring youth unemployment.

Labour data in September showed the unemployment rate for 15 to 24 year olds was hovering near 20%, more than three times the national tally.

Australia on Monday said it will fast track infrastructure projects worth some A$7.5 billion to support the economy.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Fed’s Mester says policymakers need to watch for financial stability risks By Reuters

Published

on

By


© Reuters. Cleveland Federal Reserve Bank President Loretta Mester speaks in London

(Reuters) – The Federal Reserve’s new approach to monetary policy should help the central bank influence the economy at a time when interest rates and inflation are low, but policymakers need to keep an eye out for financial stability risks, Cleveland Fed Bank President Loretta Mester said Wednesday.

The framework clarifies that strong employment on its own is not a concern to the Fed unless there are strong inflationary pressures or financial stability risks, Mester said. But policymakers also need to remember that low rates could encourage “higher levels of borrowing and financial leverage, increased valuation pressures, and search-for-yield behavior,” she said.

“While monetary policy that leads to a stable macroeconomy encourages financial stability, it is also possible that in an environment with low neutral rates, a persistently accommodative monetary policy could, in some cases, increase the vulnerabilities of the financial system,” Mester said in remarks prepared for a virtual event on monetary policy.

The relationship between low rates and stability needs to be studied, she said. “How best to approach the nexus between monetary policy and financial stability in a low-interest-rate world deserves more consideration,” Mester said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Economy

Fed’s Brainard says more fiscal, monetary support needed By Reuters

Published

on

By


© Reuters. Federal Reserve Board Governor Lael Brainard speaks at the John F. Kennedy School of Government at Harvard University in Cambridge

By Dan Burns and Ann Saphir

(Reuters) – Despite a “heartening” early bounceback from the initial hit to the U.S. economy delivered by the COVID-19 pandemic, the recovery has been uneven and will require continued support from the Federal Reserve and fiscal authorities to ensure it becomes broadbased and sustainable, Federal Reserve Governor Lael Brainard said on Wednesday.

Brainard, in remarks to an online conference of the Society of Professional Economists, said the economy’s overall gains since the worst of the crisis mask big disparities among sectors and among Americans that could hold back the overall recovery.

The Fed, she said, is committed to providing “sustained accommodation” to the economy for as long as needed. At the same time, the biggest risk to her outlook for recovery is that fiscal support from the federal government will be withdrawn too soon.

“This strong support from monetary policy – if combined with additional targeted fiscal support – can turn a K-shaped recovery into a broad-based and inclusive recovery that delivers better outcomes overall,” Brainard said.

Brainard’s reference to a “K-shaped” recovery nods to an increasingly popular description of the rebound from the spring’s low point in activity, under which many households and small businesses have seen little improvement.

“Premature withdrawal of fiscal support would risk allowing recessionary dynamics to become entrenched, holding back employment and spending, increasing scarring from extended unemployment spells, leading more businesses to shutter, and ultimately harming productive capacity,” Brainard said.

Among the more troubling developments from the recession caused by the pandemic, she said, are that job losses have occurred disproportionately among minority populations and, more recently, that prime-age working women have left the labor force.

“If not soon reversed, the decline in the participation rate for prime-age women could have longer-term implications for household incomes and potential growth,” she said.

Brainard signaled that the Fed will not only keep rates at their current near-zero level for years, but will, even after liftoff, raise them only gradually to keep rates at levels designed to stimulate economic growth.

The central bank will “have the opportunity” in the months ahead to clarify how the Fed’s asset purchase program could best work in combination with forward guidance on rates, she said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Economy

BoE’s Ramsden says now not the time for negative rates By Reuters

Published

on

By


© Reuters. FILE PHOTO: Bank of England Deputy Governor for Markets and Banking, Dave Ramsden attends a Bank of England news conference, in the City of London

LONDON (Reuters) – Cutting interest rates below zero risks damaging British banks’ capacity to lend, and is not currently the right tool for the Bank of England to stimulate the economy, Deputy Governor Dave Ramsden said on Wednesday.

“While there might be an appropriate time to use negative rates, that time is not right now,” Ramsden said, adding that asset purchases were a better way to boost demand.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Trending

Copyright © 2017 Zox News Theme.