RBA’s Kent seeks to explain divergent labour and growth outcomes
Assistant governor points to range of factors affecting forecasts
Reserve Bank of Australia (RBA) assistant governor Christopher Kent sought to explain why the central bank got its forecasts of unemployment wrong but growth right in a speech today (August 14).
Labour force data has been "a bit better than expected", Kent said during remarks to the Economic Society of Australia. At the same time, GDP growth has been "only moderate", roughly in line with what the RBA expected.
Kent ran through four explanations. First, he said, an unexpected decline in net
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