Wage Growth Halts Rate Rise | Kanebridge News
Kanebridge News
Share Button

Wage Growth Halts Rate Rise

RBA governor Dr Philip Lowe speaks out on ascendent property markets and future plans.

By Terry Christodoulou
Wed, Mar 10, 2021Grey Clock < 1 min

Reserve Bank of Australia governor, Dr Philip Lowe, has dented any suggestion of a pending rise in official interest rates, citing slow levels of wages growth, inflation and current unemployment figures as factors that will see maintained rates through until to at least 2024.

His comments come as the Australian housing market engages unprecedented levels of growth — with many tipping a necessary increase in rates given the stronger than anticipated march out of the pandemic.

Speaking at the Australian Financial Review’s Sydney business summit, Dr Lowe said that despite the strong economy, interest rates – which the bank cut to a record low of 0.1 per cent in 2020 – would only start rising when wages were growing fast enough to lift inflation.

“The point I want to emphasise is that for inflation to be sustainably within the 2-3% target range, wages growth needs to be materially higher than it is currently,”  Dr Lowe said.

Wages growth currently sits at a record low of 1.4 per cent.

“The evidence strongly suggests that this will not occur quickly and that it will require a tight labour market to be sustained for some time. Predicting how long it will take is inherently difficult, so there is room for different views. But our judgment is that we are unlikely to see wages growth consistent with the inflation target before 2024. This is the basis for our assessment that the cash rate is very likely to remain at its current level until 2024.”

MOST POPULAR

Interior designer Thomas Hamel on where it goes wrong in so many homes.

Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.

Related Stories
By Robyn Willis
Fri, Aug 5, 2022 2 min

When people talk about making a seachange, chances are this is the kind of property on the NSW South Coast that they have in mind.

Open for inspection for the first time this Saturday, 24 Point Street Bulli offers rare absolute beachfront, with never-to-be-built-out north facing views of the ocean. Located on the tip of Sandon Point, this two-storey property is a surfer’s dream with one of Australia’s most iconic surf breaks just beyond the back wall.

On the lower floor at street level, there are three bedrooms and two bathrooms, including a family bathroom and an ensuite in the master suite. A fourth bedroom is on the upper floor, along with the main living area, and is serviced by its own bathroom. 

While this would make a spectacular holiday home, it is well equipped for day-to-day living, with a spacious gourmet kitchen and butler’s pantry set into the articulated open plan living area on the first floor. A separate media room to the street side of the property on this level provides additional living space. 

Every aspect of this property has been considered to take in the light and views, with high ceilings internally and spacious, north facing decks on both levels to take in views of rolling waves. If the pull of the ocean is irresistible, it’s just a 100m walk to feel the sand between your toes.

The house is complemented by a Mediterranean, coastal-style garden, while the garage has room for a workshop and two car spaces.

An easy walk to Bulli village, the property is a 20 minute drive from the major hub of Wollongong and just over an hour to Sydney.

 

Open: Saturday August 6 2pm-3pm Auction: Saturday September 3 Price guide: N/A but expected to exceed $5.3m paid in March for 1 Alroy Street 

Contact: McGrath Thirroul – Vanessa Denison-Pender, 0488 443 174