Australian budget Australian interest rates

Bowen: AAA downgrade is going to hurt

Wednesday, 30 November 2016

Chris Bowen is talking it up, or is that down, at the AFR:

Shadow treasurer Chris Bowen will on Wednesday outline the bleak scenario facing the nation’s banks and heavily indebted households if the AAA credit rating is lost, and blame the Turnbull government for exploding federal debt by $4500 a person in Australia.

…According to Mr Bowen, even a modest 20-basis-point increase to the average mortgage holder would have them paying $720 more a year in interest payments.

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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.