In its latest report, the International Monetary Fund (IMF) cut Australia’s GDP growth forecast for 2021, while raising the outlook for 2022.
“There are short-term downside risks, they are largely balanced afterwards. “
“They should cut back on loans for cool down the housing sector.”
“Monetary and fiscal policy must remain stimulating to support the economy during a difficult period of lockdowns due to the coronavirus.”
“Interest rates at historic lows have driven an increase in house prices and indebtedness, this must be content. “
“The rise in house prices raises affordability and stability concerns financial. “
“Macroprudential policy should be tightened and loan regulations closely watched.”