Post to Facebook on 9/5/19 at 2:18 AM
Commenting on “Why the Reserve Bank defied the economic doomsayers on interest rates”
https://www.theage.com.au/business/banking-and-finance/why-the-reserve-bank-defied-the-economic-doomsayers-on-interest-rates-20190507-p51kwq.html
Posted to The Age (7/5/2019) on 8/5/2019
Commenting on “Why the Reserve Bank defied the economic doomsayers on interest rates”
https://www.theage.com.au/business/banking-and-finance/why-the-reserve-bank-defied-the-economic-doomsayers-on-interest-rates-20190507-p51kwq.html
”Keep interest low, low, Lowe,
Economy continues to be slow, slow, slow!”
Consumer confidence has been in decline, and the coming quarter Is unlikely to show zero inflation rate as utility, rates and charges, children spending for schooling, will be on the increasing spending side of the ledger.
Stagnate wages will not be for long if Labor wins the forthcoming Federal Election. Wage increase will spiral like a tornado, and unstoppable. There will be a lot of industrial unrest, and the economy may go backwards.
The rationale is simple; if any sector is given a wage increase greater than the inflation rate or CPI, it does not matter whether the sector was lowly paid before, the rest of the unions of other sectors will ask for similar rise in the name of fairness.
I prefer to see a different monetary policy for some time, but it seems not to rock the boat was the preferred option. Low interest rates have not improved consumer confidence or economy in many countries.
What can the RBA and Phil Lowe do to curb this? Will adjusting the interest rate alone fix the problem?
Commenting on “Why the Reserve Bank defied the economic doomsayers on interest rates”
https://www.theage.com.au/business/banking-and-finance/why-the-reserve-bank-defied-the-economic-doomsayers-on-interest-rates-20190507-p51kwq.html
Posted to The Age (7/5/2019) on 8/5/2019
Commenting on “Why the Reserve Bank defied the economic doomsayers on interest rates”
https://www.theage.com.au/business/banking-and-finance/why-the-reserve-bank-defied-the-economic-doomsayers-on-interest-rates-20190507-p51kwq.html
”Keep interest low, low, Lowe,
Economy continues to be slow, slow, slow!”
Consumer confidence has been in decline, and the coming quarter Is unlikely to show zero inflation rate as utility, rates and charges, children spending for schooling, will be on the increasing spending side of the ledger.
Stagnate wages will not be for long if Labor wins the forthcoming Federal Election. Wage increase will spiral like a tornado, and unstoppable. There will be a lot of industrial unrest, and the economy may go backwards.
The rationale is simple; if any sector is given a wage increase greater than the inflation rate or CPI, it does not matter whether the sector was lowly paid before, the rest of the unions of other sectors will ask for similar rise in the name of fairness.
I prefer to see a different monetary policy for some time, but it seems not to rock the boat was the preferred option. Low interest rates have not improved consumer confidence or economy in many countries.
What can the RBA and Phil Lowe do to curb this? Will adjusting the interest rate alone fix the problem?
