Global trade war would hit overall activityBut much depends on how China would reactOur flexible exchange rate and independent monetary policy are powerful shock absorbersImpact on Australian inflation is ambiguous, could move in either directionWill respond in either direction, with force if needed, to meet mandate
This just mostly echoes the remarks from Bullock yesterday. Australia will be mostly indirectly affected by Trump tariffs, as a result of their close ties with China. So, it’s mostly a case of how US-China trade relations will be affected and the spillover impact will be that on Australia.
This article was written by Justin Low at www.forexlive.com.
