Money RBA's Ellis tips wages to grow, eventually

12:31  13 february  2018
12:31  13 february  2018 Source:

How plummeting Wall St stocks could impact your wallet

  How plummeting Wall St stocks could impact your wallet The rise and fall of the US stockmarket has a direct impact on the livelihoods of all Australians, and it's tethered to wage growth.Either way, it causes intense nervousness among investors and governments around the world.

The RBA estimate that the tipping point is when we have unemployment of about 5 per cent. But that’s the RBA ’ s central unemployment forecast for 2020 and it is above the NAIRU. Ms Ellis said in her speech that wage growth will rise, “but not immediately”.

February 21, 2018. RBA ’ s Ellis tips wages to grow , eventually . Business Finance. February 14, 2018. RBA boss confident of growth pick-up. Finance.

Dr Luci Ellis.© AAP Image Dr Luci Ellis. The Reserve Bank expects wage growth to pick up eventually even though companies are currently reluctant to raise salaries for fear of becoming uncompetitive.

Employers have cut costs in the face of strong competition but early signs of labour shortages and an inability to further trim margins mean that they will eventually have to raise prices and wages, RBA assistant governor Luci Ellis said in a speech on Tuesday.

Dr Ellis said current enterprise agreements would likely create a lag between labour shortages and wage rises to attract skilled staff, but that firms will eventually have to move on remuneration.

Secret tips of mum who makes 385 meals a week for $150

  Secret tips of mum who makes 385 meals a week for $150 A Toowoomba mum who prepares up to 385 meals a week for her family has found a way to keep her grocery budget to just $150. Kerri-Ann Manly has four children, three step-children and two grandchildren, and makes anything from 175 to 385 meals a week for them.It all starts with a fortnightly plan that allows her to plan her grocery shopping, she told The TODAY Show.She avoids pre-packaged food, pre-chops her fruit and vegetables and packs her groceries away according to what day she will need them.

Companies are reluctant to give pay rises to staff as they avoid raising their prices for fear of losing business, according to a senior Reserve Bank official.

RBA ' s Ellis Says Australian Wages Will Pick Up Only Gradually. (Bloomberg) -- Reserve Bank of Australia Assistant Governor Luci Ellis warned that wage growth could take longer to pick up even if the nation’s jobless rate hits the central bank’s estimated full employment level.

"Despite firms' reluctance to raise prices, margins cannot be squeezed forever," Dr Ellis told a conference in Sydney.

"Higher costs will, therefore, boost price inflation over time."

But heightened competition in retail - which has led to the demise of stores including Dick Smith, led to profit warnings from the likes of Myer, and created margin pressures at retailers including JB Hi-Fi - means there is still firm resistance to lifting wages.

"Foreign retailers have entered the local market in recent years and continue to do so," Dr Ellis said.

"This has also induced the existing players to reduce their costs to stay competitive, for example by improving inventory management."

Bride Gets Trapped in Elevator on Her Wedding Day .
She said she had some champagne while awaiting rescue.Melissa Rodger, 32, who married her then-fiancé, Justin, at the Providence Biltmore Saturday, was headed to the 18th floor to freshen up before her cocktail hour and reception when things took a turn.

—   Share news in the SOC. Networks
This is interesting!