MYEFO to cut iron ore forecast to $60?

From the ABC via Bloomie and Forexlive:

Local ABC news reporting, unidentified sources:

Australian government to lower assumed iron ore price to $60/ton

Also:

Mid year economic anf fiscal outlook (MYEFO) won’t include new taxes or new spending cuts

There’ll be more on this later today, hopefully. Bring it on. This will completely open up the structural deficit to debate and put pressure on everyone to find cost savings.

Perhaps it’s one reason why the Australian dollar just got poleaxed on the open 40bps to a new four year low, though that may have more to do with the Swiss!

Who said shutting BREE was a bad idea?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.