The economic uncertainly of the coronavirus has seen the Reserve Bank revise down its expectations for growth for this year, but even without such hits to the economy it is clear households have little willingness to spend in an era of low income growth.
In the latest statement on monetary policy, issued on Friday, the Reserve Bank is trying to straddle the position of being concerned about the impact of fires and the coronavirus and also being upbeat.
The beginning of the economic outlook chapter of the RBA’s statement suggests little to worry about. It notes “the outlook for the Australian economy is for growth to pick up over the next two years, supported by accommodative monetary policy, a pick-up in mining investment and a turnaround in dwelling investment.”
