https://www.rba.gov.au/publications/bulletin/2015/jun/pdf/bu-0615-2.pdf stronger growth in labour productivity has worked to contain growth in labour costs Declining wage growth reflects spare capacity in the labour market, a decline in inflation expectations, a lower terms of trade, and the need for the real exchange rate to adjust to improve international competitiveness. Decline in ToT and fall in mining…… Continue reading Why Is Wage Growth So Low?
http://www.rba.gov.au/monetary-policy/rba-board-minutes/2017/2017-04-04.html International economic conditions Global economic conditions have improved over 2017 Growth in industrial production has increased Business conditions in manufacturing and services sectors at high levels Significant increase in the growth of global merchandise trade volumes, driven by stronger demand from east Asia and the US Merchandise imports to some emerging markets has stopped…… Continue reading Summary of the April RBA monetary policy meeting
http://www.rba.gov.au/media-releases/2017/mr-17-07.html The RBA left the cash rate at 1.5% at its April meeting, due to the following reasons: Conditions in the global economy have improved, with both global trade and industrial production picking up. Growth in China, our largest trading partner, is being supported by higher spending on infrastructure and property spending – however medium…… Continue reading 2017 April- RBA leaves cash rate unchanged at 1.5%
http://www.smh.com.au/business/the-economy/unemployment-steady-at-59-in-march-20170413-gvk7ff.html Figures released by the ABS show that employment grew more than expected last month- but a rise in the participation rate kept unemployment steady at 5.9% Number of employed Australians grew by 60,900 in March, based on seasonally adjusted figures, while economists had predicted an increase of only 20,000 ABS said employment grew 0.14%…… Continue reading March employment statistics
http://www.smh.com.au/business/the-economy/malcolm-turnbull-has-the-medicine-to-fix-the-housing-bubble–he-just-wont-administer-it-20170403-gvcfbu.html Figures produced on Monday (3/04/17) by CoreLogic show that in Sydney and Melbourne residential property prices have gone up 19 per cent and 16 per cent respectively over the past year, and growth across all capital cities is at a seven-year high. Investors now account for 50% of buyers To eliminated negative gearing tax…… Continue reading What are the solutions to Australia’s housing bubble?
Household debt relative to disposable incomes has reached a record high of 189%. This ratio is an average across all Australian households, of which only a third have a mortgage. This suggests the ratio of debt to disposable income is much higher among those with mortgages and even higher amongst those that recently borrowed for…… Continue reading Level of Australian Household Debt
World trade expanded by only 1.7% in the financial year of 2016, the lowest pace of trade and output growth since the financial crisis of 2009. This is a sharp downturn from the World Trade Organisation’s expectations of 2.8% in April. The forecast for 2017 has also been revised, with trade now expected to grow…… Continue reading 2016 saw its weakest performance in global trade growth since the GFC