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Lowe gives green light for budget blowout – The Australian Financial Review

Reserve Bank governor Philip Lowe says the government should borrow more to maintain fiscal support, but direct financing from the central bank is not an option.

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Reducing the cliff
The S&P/ASX 200 Index rallied 154.7 points, or 2.6 per cent, to 6156, its highest level since March 6 on news of the government’s JobKeeper extension. It is now 14 per cent off its record level, while the Australian dollar jumped 0.5 per cent to US70.49c, the highest it has been since July last year.
UBS analysts said the JobKeeper and JobSeeker support reduced the so-called fiscal cliff in December, when government assistance stops, to $84 billion or 17 per cent of quar…

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