RBA ‘quite worried’ about ‘very weak’ productivity growth

Capital Economics’ Head of Asia Pacific Marcel Thieliant says the Reserve Bank of Australia has recently been “quite worried” about the “very weak” productivity growth. “Productivity growth is now finally rebounding,” he told Sky News Business Editor Ross Greenwood. “That means that firms can basically produce more output with any given input. “And that, in turn, also suggests that price pressures are moderating. “Then the surge in service inflation that we’ve seen over the past year will start to cool further over the next few quarters.”