Assistant governor of the Reserve Bank of Australia, Christopher Kent, has called on Australians to work later into their lives, in a bid to combat productivity loss associated with ageing populations. He also said the RBA’s current low interest rate policy is assisting Australia make the transition to an economy with an ageing population. Speaking to the Leading Age Services Australia National Congress, Kent said while monetary policy tended to focus on the near-term outlook over the next few years, the RBA needed to account for longer-term structural changes. He said the noticeable decline in labor participation owed much to the usual response of discouraged workers, both young and old, to subdued labor market conditions, which would likely unwind as conditions improve.
