Bigger Deficits, Higher Rates? Michael Knox Unpacks the Latest IMF Estimates

Morgans Chief Economist and Director of Strategy, Michael Knox, joins Steve Austin on ABC Radio Brisbane to discuss the IMF’s latest Fiscal Monitor, released in October. The IMF now expects Australia’s budget deficits to run about 1% of GDP higher out to 2030 than forecast this time last year. That’s numbers Michael says are starting to look like those of European welfare states. In this interview, Michael covers:What the IMF’s October Fiscal Monitor shows for Australia’s budget outlook Why larger deficits add to demand and put upward pressure on inflation What this could mean for the RBA cash rate and the labour market The case for lifting the GST and cutting taxes on savings to boost investment and productivity Who really sets economic policy in Canberra This video contains general information only and does not take into account your personal circumstances. Please seek advice from your Morgans adviser before making any investment decisions.