11 Jul 2019
Two policy rate cuts, government tax rebates and more infrastructure investments led Australia’s economy to do well, according to Australia’s central bank.
Speaking to the local media, Reserve Bank of Australia (RBA) Governor Philip Lowe explained the factors that are affecting Australia’s economy. He said, ‘The outlook is being supported by our lower interest rates, by your tax cuts, by higher levels of investment in infrastructure, by a pick-up in the resources sector and the stabilization of the housing market in Sydney and Melbourne.’
Furthermore, after a meeting with RBI treasurer, Josh Frydenberg, Lowe said that he agreed ‘100% with [Frydenberg] that the Australian economy is growing,’ adding that ‘Australia remains a great place for businesses to expand, innovate, invest and employ people.’
The Australian central bank wanted to lower unemployment to be below 5.2% and also to raise wages in order to put inflation to around 2%-3%.
Frydenberg accepted that they may encounter some friction due to current affairs, such as the trade war and effects of drought and flood. However, he still remained positive about the economy saying that there will be ‘good news for the Australian economy.’ He added on saying, ‘So what we’ve agreed on today is that Australia remains a great place to invest and to employ people and we’re going to work together, the government and the RBA, to ensure that continues to be the case.’