The US-based Fitch ratings is out with its credit review report on the Australian economy, confirming the sovereign rating at AAA with a Stable outlook.
“Momentum in the Australian economy has decelerated in the near term, but still compares well with AAA peers.
The slowdown of the Australian economy is due in part to spillovers from the weakening housing market on dwelling investment and household consumption.
It expects ongoing housing market correction in Australia to remain orderly.
Forecasts Australia’s debt-to-GDP to begin a downward trajectory in light of the improvement in fiscal performance.
Australia’s banking system is well positioned to manage a housing market shock.
Australia’s monetary policy is likely to remain accommodative to support economic growth and employment.”