showing the value of sales lifted just 0.2 per cent in September. Through the September quarter, the volume of goods sold fell 0.1 per cent. The volume of sales has fallen 0.2 per cent over the past year, the biggest drop in volumes since the 1990-91 recession.Dr Lowe said a "gentle turning point" had been reached in the economy, due in part to the amount of stimulus."The central scenario is for the Australian economy to grow by around 2.
When the RBA started cutting rates earlier this year, it signalled it believed unemployment had to fall to at least 4.5 per cent to put upward pressure on wages and inflation. Dr Lowe on Tuesday said the jobs market was still the bank's main focus. "Wages growth remains subdued and is expected to remain at around its current rate for some time yet," he said. "A further gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2-3 per cent target range. Taken together, recent outcomes suggest that the Australian economy can sustain lower rates of unemployment and underemployment.
Dr Lowe reiterated his view the country would have an "extended period" of low interest rates so that the jobless rate could fall. He said the bank was prepared to cut rates further if needed to boost growth and drive down the unemployment rate.Recent outcomes suggest that the Australian economy can sustain lower rates of unemployment and underemployment.
Serious question.....how does cutting rates help household finances when the RBA wants to boost household debt and spending to achieve growth?