Steady gross domestic product (GDP) or economic growth Annual inflation over the twelve months to March rose 1.1%. A pick-up in inflation and wages growth is expected, but it is likely to be only gradual and modest. Low inflationĭespite the strong recovery in economic activity, the recent CPI data confirmed that inflation pressures remain subdued in most parts of the Australian economy. Even so, there remains a concern among investors that higher inflation could mean interest rates end up being raised earlier than the 2024 target. RBA governor Philip Lowe restated the board will not increase the cash rate until actual inflation is sustainably within the two to three per cent target range, and this is unlikely to be until 2024 at the earliest. On, the Reserve Bank of Australia left the cash rate at a record low 0.1% following its monthly board meeting but has upgraded its economic forecasts. The economic recovery in Australia has been stronger than expected and is forecast to continue. An increase in asset pricesĪn increase in asset prices: stocks, real estate and other assets earmark a Goldilocks economy.
It is expected to fall to around 5.0% by the end of the year. The following features characterise it: A low unemployment rate
However, growth is not so hot as to push it into an inflationary status. The term is used to describe an ideal state for the economy.Ī Goldilocks economy is warm enough with steady economic growth to prevent a recession. To steal a line from the popular children’s story Goldilocks and the Three Bears – a Goldilocks economy is not too hot, or too cold, but just right.
0 kommentar(er)
