Wages are stagnant, consumption growth is weak and this has contributed to sluggish growth on the Liberals’ watch, the RBA has confirmed in its Board minutes published today.
The central bank said “wages growth had remained low overall” and “GDP growth had been well below trend over the year to the March quarter”.
One of the reasons for this is that “growth in household disposable income had remained low and this had contributed to low growth in consumption”, which was “well below average”.
The RBA also remarked that growth in business investment was “weaker than expected”, and the retail and transportation sectors had “experienced well below-average conditions”.
The Government has vacated the field when it comes to fixing the mess it’s made of the floundering economy, leaving the RBA to do all the heavy lifting.
If the Government was doing such a good job managing the economy, the RBA wouldn’t have had to drop the cash rate to a third of what it was during the depths or the Global Financial Crisis – and wouldn’t be considering more reductions.
It’s time this third-term Government took responsibility for the feeble growth, stagnant wages and weak consumption on its watch.
TUESDAY, 16 JULY 2019