The Reserve Bank admits that its economic forecasts are hostage to a sluggish household sector struggling with poor wages growth and falling house prices.
RBA governor Philip Lowe still insists growth will appear but it will take a long time.
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.
Sluggish inflation and worryingly weak retail sales have undermined any case for an interest rate rise -- possibly for all of 2018.
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The Reserve Bank is not going to cut interest rates, maybe not until 2018. It all comes down to the price of beef.
The Turnbull government is unlikely to further disappoint voters because it's already dashed hopes of better government. And who do you trust among our major institutions?
The obvious problem being ducked here is that, if the RBA sticks to inflation-targeting, it may well have to cut interest rates all the way to zero.
Australia should be very afraid of China -- but it is its economic wobbles, not its military might, that should keep Aussies up at night.