Reserve Bank economic growth

In one sentence in yesterday’s post-Reserve Bank board meeting statement from governor Phil Lowe, summed up its current dilemma - and why interest rates are going to remain lower for longer.

"One continuing source of uncertainty is the outlook for household consumption. Household incomes are growing slowly and debt levels are high." That compares to a statement after the October meeting: “...slow growth in real wages and high levels of household debt are likely to constrain growth in household spending.”