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Productivity growth enables rising living standards and is needed for real wages growth to be consistent with stable inflation over the medium term. Prior to the COVID-19 pandemic, productivity growth in Australia and other advanced economies had been low, because business dynamism, job mobility, global trade and policy reform all…

General-purpose technologies (GPT) have the potential to transform how we work, to change the skills we need and to drive productivity growth. It is therefore important to understand the conditions that lead to the successful adoption of GPT. Using a novel database on the adoption of cloud computing and artificial…

Australia has committed to achieving net zero greenhouse gas emissions by 2050. This will require significant amounts of investment and financing as we move away from a carbon-intensive economy. Prior to the COVID-19 pandemic, productivity growth in Australia and other advanced economies had been low, because business dynamism, job mobility,…

Those who are economically literate make more informed economic choices, better understand the world around them and can influence public discourse and the actions of government. Given the importance of economic literacy for individuals and society at large, the Bank commissioned a large-scale survey of Australian adults testing their understanding…

The economic environment has become more challenging over the past year, including for small businesses. High inflation, slower growth of demand and difficulties in finding suitable labour have contributed to declines in small business conditions and confidence. Demand for business finance has slowed, consistent with the rise in interest rates…

Current conditions in global commercial real estate (CRE) markets are challenging. Weak leasing demand and higher interest rates are weighing on CRE owners’ loan servicing ability and asset values. Globally, appetite to lend to CRE investors is softening and signs of financial stress are emerging especially among office owners in…

Monitoring developments in wages is important for assessing the inflation outlook, as labour costs are a major factor in firms’ pricing decisions. Over recent years, the Reserve Bank has developed a suite of timely wages indicators based on surveys and administrative data. Together with externally developed indicators, these measures provide…

This article examines how increased financial stress in the business sector negatively impacts employment through the behaviour of firms. It highlights the non-linearity of the relationship between firms’ financial health and employment and identifies thresholds that can serve as useful reference points when assessing the resilience of the business sector…

This article explores how information in earnings call transcripts from Australian firms can contribute to the Reserve Bank’s understanding of their price-setting behaviour, as a complement to information gathered from the Bank’s liaison program. A large language model is used to process and analyse earnings call transcripts and construct new…

Climate change, and the actions taken in response to it, introduces both risks and opportunities for financial institutions. The Reserve Bank continues to monitor the build-up of climate-related financial stability risks, including how these risks are priced and who ultimately bears the physical and transition risks arising from climate change….