The Reserve Bank has released a report that paints a picture of the state of the Australian economy and the value of Australian coins.
Key points:The report by the Australian Treasury, which has been compiled by economist Mark Evans, warns of a shortage of coinage in the market and that inflationary pressures are growingThe report warns that if the cost of coin rises too high, consumers would feel the pinch”There are no easy answers to the shortage of money supply or coin prices,” said Reserve Bank governor Steven Barclay.
“We have an opportunity to act, to stimulate the economy, to encourage people to buy more of the valuable coins they value.”
Mr Evans said the report found that the shortage had been exacerbated by low coin prices.
“It’s been exacerbated as people have had to pay higher prices for coins, because they can’t buy enough for their everyday needs,” he said.
“But they’re getting better value, so the inflationary pressure is going to increase.”
The Reserve Bank expects to announce its next forecast for coin prices at a later date.
The Reserve is expecting to see a 2.5 per cent increase in inflation this year, while the inflation rate is forecast to rise by 0.5 percentage points to 4.5 percent in 2020.
The inflation rate will be around the 2 per cent mark this year and will continue to rise at a faster rate than the national average, with inflation projected to rise to 5.1 per cent in 2021.