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Lee Corporal @fa078a2fetc
Replying to @TradersCom
“Reserve Bank of Australia governor Philip Lowe has hit out at calls for a rise in interest rates, saying he won’t adjust the bank’s record low cash rate of 1.5 per cent any time soon and he won’t be swayed by increases overseas”.Speaking at the A50 Australian Economic Forum in Sydney on Thursday evening, Lowe warned against assuming the RBA would begin lifting interest rates when other advanced economies, such as the United States, started lifting theirs significantly.
He said circumstances in Australia were different because the economy was still a long way from what could be considered full employment, and the RBA’s central scenario for inflation was for it to remain below the midpoint of the medium-term target range for “the next couple of years”.
Australia unemployment at 4-year low
Australia’s unemployment rate was 5.4 per cent last month, its lowest level since January 2013, and down from a revised 5.5 per cent in November, according to the Australian Bureau of Statistics.
The result was in line a forecast of 5.4 per cent from a survey of economists by Reuters.
[quote=Australian Bureau of Statistics chief economist Bruce Hockman]Full-time employment has now increased by around 322,000 persons since December 2016, and makes up the majority of the 393,000 net increase in employment over the period.[/quote]
[quote=Capital Economics chief Australia and New Zealand economist Paul Dales]The 34,700 rise in employment in December (consensus 15,000) rounds off an exceptional year for the labour market. In fact, 2017 was the first calendar year since monthly data were published in 1978 that employment rose in every month.[/quote][hr]
RBA interest rate compared to Canada, US and BoE is higher and has been since the global recession. RBA was less accommodating to create inflation with lower interest rates
RBA’s Ellis Warns of Slow Wage Growth Despite Robust Jobs Market
Ellis says three of the key issues confronting the economy:
How much spare capacity it has;
How much wage growth and inflation will pick up;
How resilient will consumption growth be if income growth remains weak.Australian Financial Review reports Reserve Bank of Australia assistant governor Luci Ellis says a long-awaited pick-up in wages growth is likely to be “gradual” because employers are reluctant to raise pay packets for fear of becoming uncompetitive.
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