The Bank Of Australia Governor Expects Australia's Economy To Take A Hit In The Third Quarter / UK Unemployment Rate Continues To Drop To 4.6%

The Bank Of Australia Governor Expects Australia's Economy To Take A Hit In The Third Quarter

Bank of Australia Governor Lowe said that the delta variant virus is delaying the pace of economic recovery, and there is almost no monetary policy that can offset the blow to demand in the third and fourth quarters. He expects GDP to shrink by at least 2% quarter-to-quarter in the third quarter and unemployment. The rate will hit a 5-year high. However, the economy has not derailed, and growth is expected to resume in the fourth quarter, and the recovery trend will continue until 2022. In addition, Lowe pointed out that interest rates in other countries may rise, but domestic factors in Australia are different. Due to slow salary growth, it is unlikely that the benchmark interest rate will be raised before 2024.

UK Unemployment Rate Continues To Drop To 4.6%

From July to September, the unemployment rate calculated by the International Labor Organization (ILO) in the United Kingdom continued to drop to 4.6%, the lowest level since June last year, and a decrease of 0.1 percentage point from the previous value, in line with market expectations. In the same period, the total employed population continued to increase by 183,000, which was the fifth consecutive month of increase. The increase was higher than market expectations of 178,000 and the previous value was 95,000. As for salary, the average weekly salary increased by 8.3% year-on-year, which was higher than market expectations and the previous value increased by 8.2% and 8.8% respectively. As for salary excluding bonuses, it increased by 6.8%, which was in line with market expectations. The previous value increased by 7.3%. The strong employment figures may help increase market confidence in economic recovery. It also shows that the long-term damage to the job market caused by the epidemic may be less than expected.