The Reserve Bank is relying on households to spend billions of dollars of savings over the next few years to underpin its sharply upgraded forecasts for the nation’s economic growth. | JennieDuke swrighteconomy
The Reserve Bank is relying on households to spend billions of dollars of savings over the next few years to underpin its sharply upgraded forecasts for the nation’s economic growth but expects workers will have to wait years for decent wage rises.
“The unique features of the pandemic and policy response have seen the economy rebound much faster than in previous downturns,” the statement said. In a better outlook for the economy, where people spend more than expected, the RBA estimates the unemployment rate falling to about 3.75 per cent and inflation rising to 2.25 per cent by mid-2023.But coronavirus-related restrictions can severely limit what people do with their money. The RBA found consumption growth rapidly improved after the height of the virus but moderated in March to about 1.5 per cent below its pre-pandemic levels due to “short, sharp lockdowns in a number of states”.
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