Recap of RBA's Ellis speech, Q&A earlier
Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis spoke earlier today
Post are here:
- More from RBA's Ellis - cash rate and bank rates do not have to move together
- RBA's Ellis: Weak income growth very risky given high debt levelsR
A couple of recaps up around the place if you'd like:
- In her speech, Ellis drilled down into three of the key issues confronting the economy: How much spare capacity it has; how much wage growth and inflation will pick up; and how resilient will consumption growth be if income growth remains weak.
And, via Reuters: Australia central bank sees only gradual recovery in wages
- Ellis said liaison with firms found many were reluctant to raise prices in the face of fierce competition, so were also reluctant to grant larger wage rises.
Apart from those two, some of the local outlets also picked up on the speech:
- SBS: The RBA expects wage growth to pick up eventually even though companies are reluctant to raise salaries for fear of becoming uncompetitive with overseas rivals.
- Australian Financial Review: Reserve Bank of Australia assistant governor Luci Ellis says a long-awaited pick-up in wages growth is likely to be "gradual" because employers are reluctant to raise pay packets for fear of becoming uncompetitive.
pro tip for Aussie employees ... quickest way to a pay rise is a new job.