- CNTV English - CCTV News

Australia optimistic about economy, but remain cautious

07-21-2010 09:06 BJT

Watch Video

Play Video

Minutes from Australia's central bank released on Tuesday show policy makers are optimistic about the country's economy this year, but remain cautious about 2011. Let's take a look.

Australia's central bank said it was optimistic about the local economy, adding the nation had been spared the worst of the crisis.

But the Reserve Bank said the outlook for 2011 was less uncertain.

Morgan Stanley's Pieter Van Der Schaft also warns of the potential impact from a A$300 billion bank funding shortfall for Australia's banks.

Pieter Van Der Schaft, Morgan Stanley's Head of Interest Rate Swaps said "The absorption capacity of domestic issuance, issuance in domestic market is quite limited, somewhere between 20 to 40 billion Australian dollars, so most of the funding will have to be done offshore".

Van Der Schaft says this will translate to higher funding costs, which in turn may impact loan activities.

Pieter Van Der Schaft said "The two effects for the Australian economy are higher lending rates, and potentially a squeeze in the availability of credit"

Morgan Stanley says this will weigh on domestic demand leading to the possibility of an easing in Australian monetary policy over the next 12 to 24 months.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program