With the world looking for new ways to save money, how can we find ways to spend less money and save more?
The tipping point for many Australians is about to hit.
With inflation forecast to increase by 2.6 per cent in 2018, the Commonwealth Bank has warned of a looming financial crisis.
It’s been more than six years since the last Commonwealth Bank of Australia (CBA) review of its debt strategy, in which it was asked to examine how it could reduce its debt to GDP ratio to reduce the risk of a potential credit crisis.
“There is an increasing level of uncertainty around the world regarding the outlook for the economy, and the global economic outlook,” the CBA said in a statement on Tuesday.
“While this is a difficult time to be in, it is also a time to look for opportunities to save for the future.”
While the CAB said there were “no plans to initiate any asset sales” in the near future, it did say that the Bank would consider asset sales in the coming years.
“The CBA is a global bank with more than $30 trillion in assets under management, and is positioned to be an important player in the global economy,” the statement read.
The CAB’s strategy was based on an expectation that the Australian economy would continue to grow at its current rate, and that it would generate enough revenue to offset its debt.
“It is important to recognize that the CBE’s asset-buying program will have a positive impact on the Australian financial system in the long term,” the bank said.
The bank also said that while the government’s proposed debt reduction package is “still an extremely ambitious goal”, it was “not unreasonable to expect the CMA and the CCA to work together to achieve this goal”.
The CMA is the national government body that oversees the banking sector and has been under fire over the recent financial crisis, with critics accusing it of being too lenient with big banks and their clients.
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