Sunday, 24 June 2018
New York
RBA's Lowe: Aussie Economy To Break Out Of Rut
Tuesday, 5 September 2017 18:17 WIB | FISCAL & MONETARY |Moneter

Reserve Bank of Australia Gov. Philip Lowe remains confident the country will break out of its low-wage-growth, low-inflation rut.

In a speech just hours after the RBA opted to keep interest rates on hold, Mr. Lowe said he was optimistic that the laws of supply and demand still worked in the labor market.

"I am optimistic enough that I don't see it [low wage growth] as a permanent state of affairs. It is likely that, as our economy strengthens and the demand for labor picks up, growth in wages will pick up too," he said.

Flat pay has plagued the Australian consumer for some years, a situation that has contributed to record household debt levels as property prices soar.

Mr. Lowe acknowledged the global scale of the problem of low wage growth, adding that a slow expansion of pay overseas was also contributing to low inflation and slower economic growth elsewhere in the world.

"The slow growth in wages is contributing to low inflation outcomes globally. My expectation is that this is going to continue for a while yet, given that the structural factors at work are likely to persist," he added.

Still, Mr. Lowe said the current record low for official interest rates in Australia was helping to lift the economy, something most visible in the job market.

He said the number of Australians with jobs had picked up over recent months and cited the fall in the unemployment rate.

The RBA looks set to continue moving cautiously, conscious that inflation pressures remain benign, he added.

"The Board has been prepared to be patient and has not sought to overly engineer or fine-tune things. In our view, the balance we have struck is appropriate and it is likely that the economy will pick up from here as the drag from declining mining investment comes to an end," he added.

Mr. Lowe's comments come the day before Australia releases growth figures for the second quarter that are expected to show a strong rebound from the first three months of the year.

The RBA's central scenario is for growth of around 3% over the next couple of years and for the unemployment rate to move lower gradually.


Source: MarketWatch

Bank of England Keeps Rate Unchanged as Haldane Supports Hike...
Thursday, 21 June 2018 18:13 WIB

Chief Economist Bank of England Andy Haldane secara tak terduga mengalihkan dukungannya untuk kenaikan suku bunga segera, menentang mayoritas pembuat kebijakan yang memilih untuk mempertahankan suku b...

SNB Keeps Sight Deposit Rate at -0.75%...
Thursday, 21 June 2018 14:40 WIB

Swiss National Bank meninggalkan suku bunga acuan tidak berubah pada -0,75% Keputusan tentang tingkat deposito mata diharapkan; Median survei Bloomberg: -0,75% Semua 20 ekonom memperkirakan suku bun...

Fed's Powell Says Case for Gradual Rate Hikes Still 'Strong'...
Wednesday, 20 June 2018 21:12 WIB

Pimpinan Federal Reserve, Jerome Powell mengulangi kasus yang dia ajukan untuk menaikkan suku bunga guna menjaga ekonomi terbesar dunia itu pada jalur yang berkelanjutan, dengan mengutip dukungan luas...

Draghi: ECB to Be Patient in Determining Timing of First Hike...
Tuesday, 19 June 2018 15:41 WIB

œPanduan lanjutan ke depan ECB dengan jelas memberi sinyal bahwa ECB akan tetap bersabar dalam menentukan waktu kenaikan suku bunga pertama dan akan mengambil pendekatan bertahap untuk menyesuaikan ...

ECB plans to bring its bond-buying program to a close in December...
Thursday, 14 June 2018 19:16 WIB

Bank Sentral Eropa (ECB) mengatakan akan mengakhiri program pembelian obligasinya hingga akhir tahun ini. ECB dalam pernyataannya pasca pertemuan Dewan pemerintah, mengatakan akan melanjutkan program...

Gold settles at fresh 2018 low as dollar index taps 11-month high

Gold prices marked a third straight session...

Oil Trades Near $66 as OPEC Moves Closer to Output Boost Deal

Oil traded near $66 as OPEC and its allies...

Gold Prices Edge Up After Flash PMI Data Disappoints

The gold market saw a small uptick after the...

HK stocks post biggest weekly loss in 3 months amid trade war fears (Review)

Hong Kong™s benchmark stock index ended slightly higher on Friday, but posted its biggest weekly loss in three months amid escalating trade tensions between Beijing and Washington. The Hang Seng index rose 0.2 percent to 29,338.70, while the...

Dow Halts Skid at 8 Straight Sessions, But Stock Market Ends The Week Lower Amid Trade Jitters

The Dow Jones Industrial Average on Friday closed higher, ending an eight-session slide that drove the broader market to weekly loss, amid rising global trade tensions. The Dow closed up about 120 points, or 0.5%, at 24,581, avoiding a nine-day...

Oil Ends Week With a Rally After OPEC Agrees to Smaller-Than-Expected Production Boost

Oil prices rallied Friday, with U.S. prices jumping nearly 6% for the week, as OPEC members agreed to raise output, but by an amount that appears to be less than traders had anticipated. August West Texas Intermediate crude on the New York...