The Federal Budget on October 6 was the start of a pivotal month on the economic scene.
Budget estimates released later in the month revealed a deficit of $132.5 billion in the year to September. While the deficit is expected to peak next year, there are also some positive signs emerging.
The ASX200 finished slightly up for the month, with most of October’s early gains eroded in the lead up to the US Presidential election and the RBA announcement.
The Reserve Bank has cut the cash rate to 0.1%, from its current record low of 0.25% and intends to purchase $100 billion of government bonds, to help stimulate the economy.
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Sara Ann Millard is an Authorised Representative (No. 242535) and Tax (Financial) Adviser of Crown Wealth Group Pty Ltd (AFSL 494274) and is sub-authorised by FINANCIAL HORIZONS (CAIRNS) PTY LTD Authorised Representative (No. 243012). Any information or advice provided on this site is general in nature only and does not constitute personal or investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. You should seek independent financial advice prior to acquiring a financial product. All securities and financial products such as derivatives or instruments transactions involve risks. Please remember that past performance results are not necessarily indicative of future results.