Australia's Budget Deficit Surplus Overshadowed by Interest Rate Hike Fears

Australia's budget deficit came in $6 billion better than forecast due to stronger investment and super income, but this improvement is overshadowed by concerns about a fresh interest rate rise.

Treasurer Jim Chalmers noted that the improved result was not from higher taxes on wages or commodities, but rather lower mining profits than anticipated. Higher super and investor income made up for the shortfall, he said.

Despite this positive news, Chalmers acknowledged that 'difficult months' lie ahead, with interest rates expected to rise when the Reserve Bank of Australia meets on Tuesday. The RBA is widely expected to lift the cash rate to 4.6 percent, its highest level in 15 years.