In order to aid the Australian economy's adjustment and keep the AUD from declining, the Reserve Bank of Australia cut the cash rate twice last year. Policy easing in 2016 is not expected by analysts as officials stated that they would prefer lower AUD to ease financial conditions, rather than lowering cash rate amid of strong housing market. Further, lack of investment outside mining would not facilitate the economy's core problems if the cash rates are lowered. The country's fiscal account continues to depreciate on record of low cost of capital and abundant supply of credit.

The revenues of the economy are weighed down by declining commodity prices, slow wage growth and weak domestic demand, while the government is yet to cut its expenditures. Material slippage in the budget deficit announced back in May projects a delayed return to surplus.