Malcolm Edey Quotes (4 Quotes)

The increase in business investment now underway will in due course add to the economy's productive capacity. It also offers the prospect of a pick-up in export volumes, particularly in the resources sector.

It is not hard to appreciate that this provides a significant boost to incomes and spending. With exports representing about a fifth of GDP, each 10 percent increase in the terms of trade adds about 2 percent to the value of national income.

A pattern of growth that was heavily skewed towards household spending was not going to be able to continue indefinitely, and the balance-sheet adjustment now occurring in the household sector should reduce the risk of a sharper adjustment later.

Even though the labor market is tight, the pickup we've seen in wages growth has been fairly modest so far. There's a noticeable pickup there, but it's not huge at this stage.