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Australia will become the first developed economy to begin exiting its emergency policy response to the global crisis when the Reserve Bank of Australia lifts interest rates, most likely before Christmas. That’s a sign that Kevin Rudd and Wayne Swan should be reining in one of the world’s biggest fiscal stimulus packages. Even the Greens are worried that the government is spending too much, reports The Australian.
The need to pare back the emergency stimulus flows from the Australian economy’s remarkable resilience shown by news that gross domestic product expanded again in the June quarter.
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