Australia’s productivity riddle – and what it might mean for interest rates

Michele Bullock keeps telling us productivity is flatlining. How it changes may well determine if the Reserve Bank will tolerate wage rises beyond 3%

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If the Reserve Bank’s GDP forecasts about the Australian economy are right, we should be close to a nadir with a sustainable upswing on the way – provided we can get more efficient at what we do.

Productivity growth – a concept that quickens the pulse of economists and almost nobody else – has slowed in Australia and most other developed nations for years.

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