RBA Governor Philip Lowe reiterated in a speech that economic recovery was “quicker and stronger” than expected. But “we still have a long way to go”, with unemployment rate at 6.4% and economy operating “well short of its capacity”. Inflation and wages growth were also lower than RBA would like. It’s “going to take some time” before we reach our goals.
“one piece of the recovery that is yet to click into gear is business investment”. There was a pick-up late last year, but it’s “still a long way to go” to get back to pre-pandemic level, which was “low by historical standards” already. It’s important to continue and broaden business investment recovery to have a “strong and durable recovery”.
