Somerset Times

A Lesson in Economics from the RBA




Somerset Times Edition

Week 5, Term One, 2018

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Low interest rates, the housing markets across capital cities and the post-the Commonwealth Games local economy were some of the topics discussed in a talk from the RBA. The audience, full of high school students across the region, included some from Somerset College.

On Wednesday 21 February, 30 Somerset Economics students joined 260 students from other Gold Coast schools to listen to Tim and Terry from the Reserve Bank of Australia talk about the Australian economy. During the speech, students discovered that:

  • Interest rates are at historical lows due to low wage growth and low inflation.
  • The Sydney and Melbourne housing markets are not forecast to decline.
  • Unemployment is still a little higher than the RBA would like at the moment, providing justification to keep interest rates low.
  • The Gold Coast economy has is now diversified enough to avoid a post Commonwealth Games economic collapse.
  • Australian wage growth is low, which has led to households reducing their weekly saving to maintain their standard of living.

A big thank you must go to Mr Oman and Mr Juniper for organising the day. A special thank you must also go to Michael Guy, Year 12 Starkey for performing the role of MC on the day.

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