Why Is Wage Growth So Low?

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?

Summary of the April RBA monetary policy meeting

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

2017 April- RBA leaves cash rate unchanged at 1.5%

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%

March employment statistics

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

Latest tax data proves negative gearing benefits wealthy the most

https://www.theguardian.com/business/grogonomics/2017/apr/13/the-latest-tax-data-proves-it-negative-gearing-benefits-the-rich-the-most?CMP=soc_567 Release of taxations statistics for 2014-15 by the ATO reveals that, while the number of people negative gearing has levelled in the past three years as interest rates have fallen, the greatest share of the benefits of negative gearing has gone to above average earners In 2014-15, 1.27 million people recorded a rental net…… Continue reading Latest tax data proves negative gearing benefits wealthy the most

2016 saw its weakest performance in global trade growth since the GFC

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