Part 6/9:
In comparison, Australia's economic growth remains sluggish at just 0.8%, well below its long-term average of approximately 3%. The modest growth result justifies the current low interest rate environment in Australia, as monetary policy aims to stimulate a weak economy.
Miller noted that Australia's Reserve Bank, under Michelle Bullock, might find it easier to implement rate cuts than the Federal Reserve, given the inflation rate is approaching the mid-point of the target band. This provides the opportunity for the RBA to potentially lower rates to stimulate the labor market, which has been subdued, especially outside the government-related services sector.