RBA’s Kohler: Tight labour market, demand for services to fuel domestic inflationary pressures
“A rapid recovery in population growth was a big surprise for the bank’s economic forecasts, pushing up rents and leading to an earlier-than-expected stabilization in housing prices after months of losses,” said the Reserve Bank of Australia’s (RBA) head of economic analysis Marion Kohler early Wednesday per Reuters.
The policymaker spoke at an event in Perth as he said, “The drag on consumption from the housing downturn would be smaller than previously forecasted, now that prices have steadied in recent months.”
More comments
Higher population growth is expected to increase employment growth.
Have some confidence that goods price inflation will moderate this year.
The rise in energy costs will be smaller than we forecast six months ago.
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