Low inflation and painful wage growth mean the Reserve Bank has extended its freeze on interest rates for an almost unprecedented 18th straight meeting.
Employment rising, consumer spending growing but wages are still stuck. Therein lies the problem for the Reserve Bank of Australia, writes Richard Holden.
If former US Treasury Secretary Larry Summers is right, then the unmistakable implication is that the RBA should probably cut rates – perhaps twice – later this year, writes Richard Holden.
Australia’s economic growth is unsurprisingly paltry, the RBA leaves the cash rate on hold, and Australians continue to eat away at their savings, writes Richard Holden.
Uncertainty about energy prices and political dithering on company tax rates point to businesses waiting before investing heavily, while the shift to part-time employment continues in Australia, writes Richard Holden.
