CANBERRA: Australia’s central bank chief Philip Lowe reinforced that a return of rapid wage growth remains a distant prospect despite strengthening business investment and a hiring bonanza. The governor kept interest rates unchanged at 1.5 percent Tuesday, as expected, saying in a statement: “notwithstanding the improving labor market, wage growth remains low. This is likely to continue for a while yet.” Rapid population growth and a jump in workforce participation has prevented the hiring boom from cutting deeply into the jobless rate and sparking wage gains and inflation. The Reserve Bank of Australia has opted to be a steadying influence on the economy, keeping rates at a record-low for 18 months to encourage firms to expand and take on new employees, a strategy that’s paying some dividends. The low level of interest rates is continuing to support the Australian economy,” Lowe said in his statement. “Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual.” Policy makers also remain upbeat on the labor market, noting forward indicators continue to point to solid growth, “with a further gradual reduction in the unemployment rate expected.” It currently stands at 5.5 percent. But inflation is likely to remain low “for some time,” Lowe added, reflecting limited pay rises and tougher retail competition. Amazon.com Inc. opened in Australia last year and its growing footprint could see deflation in the industry. The RBA aims for consumer-price growth of between 2 percent and 3 percent, and both headline and core inflation are below the bottom of that band.
FBR suspends six customs officers in silver swap case, launches criminal probe
ISLAMABAD: The Federal Board of Revenue (FBR) has taken major action in the ongoing silver swap case, suspending several customs...
