Lucy Ellis, assistant governor of the Reserve Bank of Australia, made the following statement:
- Weak income growth is very risky given high debt levels.
- Confident of wages and inflation pick up.
- Unemployment risks may fall further before wages rise.
- The immediate rise in wages is not expected but is expected to be gradual.
- Retail competition may work against a rise in inflation.
- Household income growth is weak in Australia.
- Households may curb spending if weak income becomes permanent.
- Cash rates that are placed from RBA and Bank rates should not move together.
