BIS warns on Aussie economy

Sunday 7 December 2014

The Bank for International Settlements (BIS) has released its Quarterly Review, which warns that situation facing commodity exporters like Australia could worsen significantly due to weaker commodity prices, the rising US dollar, and the booming property market.

The AFR has interviewed Claudio Borio, the head of the monetary and economics department at the BIS, who made the following comments related to Australia:

“Commodity exporters could face tough challenges, especially those at the later stages of strong credit and property price booms and those that have eagerly tapped equally eager foreign bond investors for foreign currency financing”…

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.