Australian economy should brace for ‘big shocks’ from bushfires, coronavirus

HSBC Chief Economist Paul Bloxham says it is “too early” to assess the impact of the “two big shocks” on the Australian economy. Mr Bloxham pointed to the bushfires and coronavirus outbreak as two major events that would likely “shock” the nation’s economy, which the Reserve Bank of Australia will take into consideration in the first meeting of the year on Tuesday. Mr Bloxham told Sky News the impact of the coronavirus would be softened by the Australian dollar “coming down” and the “appropriate response to the bushfires is certainly more fiscal spending than it is monetary policy”. “Fiscal spending can be targeted and that can provide support for the economy.”

from National | Daily Telegraph https://ift.tt/2Sgrjao