“Budget policy inflationary”
(iV.Z. Press Assn —(’opiiriuht l SYDNEY. The Australian Federal Government's Budget deficit policy would trigger off inflation rates not yet known Ito Australia, the assistant (general manager of the Bank of New South Wales
(Mr R. B. Pr.owse) said at a symposium on prospects for Australian industries. He forecast inflation of 25 per cent a year in the near future, and expected a credit squeeze within the next few months. Taxation would take about slBoom out of circulation,; and, without appropriate action, this would force the average liquid, and Government securities ratio of the trading banks below the; minimum level of 18 per cent. This could force one or more of the trading banks ; hack into the market for: funds. In May and June, last year, banks pushed up rates on negotiable Certificates of deposit to more than 20 per cent, to avoid making use of the Reserve Bank’s “lender of the last resort’’ facilities.
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Bibliographic details
Press, Volume CXV, Issue 33819, 16 April 1975, Page 25
Word Count
158“Budget policy inflationary” Press, Volume CXV, Issue 33819, 16 April 1975, Page 25
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