Australian Treasurer on the 2 biggest risks to Australian economy: China & RBA rate hikes

<p>Australian Treasurer Chalmers spoke in an interview with Sky News, saying the two biggest risks he sees to the Australian economy are:</p><ul><li>the lagged impact of the Reserve Bank’s sharp increase in interest rates</li><li>the slowdown hitting China's economy</li><li>“A big risk to the outlook … (is) what’s happening in China and the way these interest rate rises are biting in our economy here at home,” </li><li>“(I) expect the Australian economy to grow but some of these challenges are growing … Our economy is weakening as a consequence of what’s happening in the world and what’s happened with interest rates at the same time as inflation is moderating.”</li></ul><p>On China, the problems facing Chinese authorities were broad:</p><ul><li>“They’re dealing with slowing growth, they’ve got deflation, there are concerns in their property sector and to some extent in their banking sector. Their exports have slowed</li></ul><p>Info comes via local media, the Sydney Morning Herald, <a href="https://www.smh.com.au/politics/federal/china-slowdown-rate-rises-the-biggest-threats-to-economy-chalmers-20230827-p5dzpg.html" target="_blank" rel="nofollow">here is the link</a> (may be gated).</p><p>-</p><p>Chalmers is not saying anything we don't already know. A quick useful summary nonetheless. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.