Energy costs are a significant issue: RBA
The uncertainty around the cost and availability of electricity in Australia is having an effect on the economy, the country's central back chief says.
"It is a significant issue," Reserve Bank boss Philip Lowe told a federal parliamentary committee hearing in Sydney on Friday.
Dr Lowe said energy should be part of Australia's competitive advantage and an asset that can be sold to the world.
"At the moment that's not the case and in a way it's turned into a liability rather than an asset," he said.
"It's having an effect on the economy now. It's obviously having an effect on investment in production capacity in electricity generation sector, the current uncertainty."
He noted that some businesses have been delaying investment because they're not sure about the future cost and availability of electricity.
And that was impacting people's budgets.
While inflation growth is low, the high cost of utilities was pushing it up.
"It's having multi-faceted effects on the economy and it's another one of these issues we need to pay very close attention too," Dr Lowe said.
