Money Tap

Although the economy is 'performing well' the RBA reports that growth in household income remains low, debt levels are high and some asset prices have declined.

One continuing source of uncertainty is the outlook for household consumption. Growth in household income remains low, debt levels are high and some asset prices have declined. Standard variable mortgage rates are a little higher than a few months ago, but rent inflation has remained low. The drought has led to difficult conditions in parts of the farm sector. 

The unemployment rate is 5 per cent, the lowest in six years. With the economy expected to continue to grow above trend, a further reduction in the unemployment rate is likely. The vacancy rate is high and there are reports of skills shortages in some areas. The stronger labour market has led to some pick-up in wages growth.

 

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