Nov 8, 2017

The Reserve Bank are worried about something else now

Household consumption is now the issue worrying the Reserve Bank as it strains to see more growth and inflation on the horizon, writes Glenn Dyer.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

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.”

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6 thoughts on “The Reserve Bank are worried about something else now

  1. David Hardy

    Check your grammar.
    The Reserve Bank are worried about something else now.
    Should be IS worried .
    Reserve Bank (singular) therefore IS (singular) NOT are .
    If it were Reserve Banks (plural) then it would be ARE (plural)

    1. brian crooks

      david Hardy, is it Australia is fucked or Australians are fucked, does`nt really matter does, we are fucked

  2. brian crooks

    the reserve has finally seen the wolf lurking in the woods, the greed of the conservative 1% and their financial control over their coalition politicians have seen the destruction of unions and slashing of workers conditions and services, as in the U.S, these conservatives are like cancerous tumours that grow and kill their host slowly,and just like tumours they must be removed, only a change of government can save Australia, forget the U.S and also Britain they are terminal, its too late for them.

  3. Charlie Chaplin

    “One continuing source of uncertainty is the outlook for household consumption.” What, they’ve only just noticed? A little slow on the uptake, aren’t they?

    Note to the Reserve Bank: stagnant wages and rising costs= fall in consumption.

    1. brian crooks

      less income means more spending?, no wonder we`re in such a mess, the so called economistand financial experts do 5 years at university to arrive at a theory that trickle down economics, wages and penalty rate cuts and loss of conditions s equals increased spending power, then wonder why the economy tanks, that`s recession economics, when you look at the total lack of talent in the lib/nat parties its easy to see why the economy is going down the gurgler, the incompetence of the conservative politicians is only equalled by the stupidity of the people;e that vote for them.

      1. Hamis Hill

        Brian, Adam Smith wrote at the end of his first book in The Wealth of Nations, that those of whom you complain in the finance world had “An interest to deceive and oppress the public”, and having succeeded in the past would do so again.
        So perhaps the voters are not so much stupid as successfully “deceived and oppressed” by past masters?

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