FXStreet (Bali) – Alan Oster, Group Chief Economist at NAB, notes that the implications of lower oil prices on Australia are multifaceted, but the net impact is overall assessed to be neutral.
Key Quotes
“On Australia the outcomes are complicated – but are probably net positive to growth and will result in lower inflation. The latter might also increase the risk of further help via rate cuts. But lower oil prices will be especially punishing on LNG profits – via the link between long term LNG contracts and oil prices. And, via that mechanism, it will provide further substantial headwinds to government revenues.”
(Market News Provided by FXstreet)