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SYDNEY Wholesale Mitch McGary Jersey , Aug. 11 (Xinhua) -- The Reserve Bank of Australia (RBA) announced on Friday that wage growth will remain low in Australia, with a close eye to be placed on the effect of consumer spending habits on the overall economy.


Philip Lowe, the governor of the RBA, appeared before the House of representatives Standing Committee on Economics on Friday and said that there has been an "adjustment" with everyday Australians needing to "get used to lower growth in their real wages."


"Many now see this as more than just a temporary development, with wage increases of 2 point something percent now the norm. In my view, the underlying drivers of the slower wage growth in Australia are much the same as we are seeing overseas Wholesale Serge Ibaka Jersey ," Lowe said.


In his testimony, the governor made note of the increased pressure on households, as they deal with increasing debt burdens when compared to their income - as well as the constant strain of soaring electricity prices - which means consumer spending may be negatively affected.


Paul Dales, chief economist at Capital Economics told Xinhua on Friday that the lack of wage growth in Australia is a major issue, with the key concern for the Australian economy being how the "drag" on consumption growth will affect the local economy overall.


"Our forecast is that consumption growth will actually slow from 2.6 percent last year to 2 percent this year, which is basically the main reason we don't expect economic growth to be as good as the RBA expects over the next couple of years Wholesale Taj Gibson Jersey ," Dales said.


"It is a big downside risk to the economy, and to the RBA's own forecasts as well."


Investment in business was also on the RBA's agenda at the hearing in Melbourne, and Lowe said that the "strong pick-up" that the RBA has been waiting to see from non-resources investment levels is taking longer than anticipated.


"While we do see positive signs in parts of the economy, many firms still show some reluctance to commit to significant investment, often citing a range of uncertainties. It is possible that this reluctance will continue for a while yet," Lowe said.


Lowe was not entirely negative on the outlook however Wholesale Victor Oladipo Jersey , and said the RBA will continue to adopt a "middle path" approach with their forecasts, as improved business conditions could potentially open the door to an influx of investment down the line.


The head of the RBA was pleased by the "upside" of growth in China, which directly benefits the