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Treasurer Swan Says No Need For Australia To Book a Deficit
Friday, 21 November 2008 01:55:44 GMT  |  Luis Gil, DailyFX.com
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At a speech today, Australian Treasurer Wayne Swan stated his belief that the South Pacific government would not be required to use deficit spending to jump-start the economy.

“We don’t believe it is necessary in the current circumstances to borrow to invest in the strength of the Australian economy,” expressed the Treasurer. Further optimism led him to state, that “we shouldn’t lose sight of the fact there are underlying strengths, that we have to meet the challenges that ar out there that come from the global financial crisis.”

Yesterday, Reserve Bank Governor Glenn Stevens said that nothing should be taken off of the table. Government shouldn’t be afraid of borrowing as a means to finance a boost. With the benchmark interest rate at 5.25% the central bank has substantial room for further rate cuts, possibly lending credence to the treasurer’s comments.


AUDUSD traded through 0.6135 at 21:56EST.

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