Australia Shows Why Weak Productivity Is the New Inflation Problem
The RBA has been forced to hike rates as a modest pick up in growth stokes inflation.
This article is for subscribers only.
I’m Swati Pandey , economics reporter in Sydney. Today we’re looking at how Australia may be unique among major economies in operationalizing concerns about weak productivity and lower potential output into a tighter policy stance. Send us feedback and tips to ecodaily@bloomberg.net . And if you aren’t yet signed up to receive this newsletter, you can do so here .
Central banks across much of the developed world have spent the past year or so dissecting weak productivity and soft output. Now, one of them has been forced to take action as a result.