Economics
Just Eleven Words From RBA Cast Doubt on Optimistic Outlook
- Lowe reiterates warning of household debt as key uncertainty
- Central bank ‘too optimistic’ on CPI, consumption: Capital
Photographer: Brendon Thorne/Bloomberg
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The Reserve Bank of Australia’s generally optimistic rate statement Tuesday came laced with a caveat: a brief sentence warning of one thing that could potentially upset its forecasts.
“One continuing source of uncertainty is the outlook for household consumption,” Governor Philip Lowe said Tuesday, days after retail sales posted the weakest three-month stretch in seven years. He added that “inflation is likely to remain low for some time, reflecting the slow growth in labor costs and increased competitive pressures, especially in retailing.”