Australian Dollar: Fiscal loosening and contained wages – TD Securities
The post Australian Dollar: Fiscal loosening and contained wages – TD Securities appeared on BitcoinEthereumNews.com. TD Securities’ Global Strategy Team says Australia’s 2026/27 Budget is slightly stimulatory, with looser fiscal policy and more upbeat Treasury forecasts than the RBA. They also note Q1 wages matched expectations and remain contained for now, but higher short‑term inflation expectations could lift wage bargaining, leaving the RBA with potential for further policy tightening if Treasury’s outlook proves accurate. Budget and wages keep RBA on tightening watch “The 2026/27 Budget papers reveal a significant improvement in the underlying cash balance of A$45b over the forward estimates. “ “This budget is slightly stimulatory. The headline deficit increases from a deficit 1.6% of GDP in 2025/26 to 2.1% in 2026/27 and the headline cash deficit is projected to deteriorate vs the underlying over the next few years by roughly A$6.4b vs prior estimates. It’s not substantial, but