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RBA Deputy Says Low Consumer Spending Allowing Mining to Boom

By Joel ScanlonMar 9 2011

The assistant governor of the Reserve Bank of Australia, Philip Lower said that near record terms of trade in the country were helping the boom in investments and profits. People were hiring more workers despite the rise in wages due to the high levels of productivity and profitability in the current time frame.

He was uncertain of just how long the boom in the terms of trade would last. However it was clear that the terms of trade at present were 90% more than the average terms of trade for Australia in the 1990s. He said that the boom was being driven by structural changes to the global economy.

Mr Lowe said that this is why there was a trend of rapid growth in some industries and hardly any in others. For instance the mining and related services were growing exponentially while the sectors such as tourism and manufacturing were not seeing such high growth trends. He added that the most important contribution the Reserve Bank can make to this task is to keep inflation low and stable.

Mr Lowe also said that the extra income that was coming into the economy was also being invested rather than spent as income levels for families rose. This was also contributing to the decline in the price of many manufactured goods. He expected the boom to last at least another year before things changed.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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APA
Scanlon, Joel. (2019, March 19). RBA Deputy Says Low Consumer Spending Allowing Mining to Boom. AZoMining. Retrieved on November 21, 2024 from https://www.azomining.com/News.aspx?newsID=3673.
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Scanlon, Joel. "RBA Deputy Says Low Consumer Spending Allowing Mining to Boom". AZoMining. 21 November 2024. <https://www.azomining.com/News.aspx?newsID=3673>.
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Scanlon, Joel. "RBA Deputy Says Low Consumer Spending Allowing Mining to Boom". AZoMining. https://www.azomining.com/News.aspx?newsID=3673. (accessed November 21, 2024).
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