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RBA gives up on big pay rises

The Reserve Bank has lowered its expectations of wages growth, dropping its forecast to a mere 2.3 per cent rise by the end of 2021.

The central bank is also concerned any more rate cuts could harm consumer sentiment.

Economist Paul Brennan tells Ross Greenwood there is no one answer to the slowing economy.

“A lot from here is going to hinge on whether the global economy does improve and that provides better support for our own economy.

“I don’t think there’s any easy, quick, magical way in which we can really bring the economy back to full speed.”

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Image: Getty/Peter Parks