RBA downplays effect of overseas migration on inflation

Migration to Australia is balancing out well by injecting both demand and supply into the economy and is not a driving factor in the nation’s domestic inflation issues, the RBA says.Answering questions in Sydney this week at the AFR Property Summit, assistant governor Sarah Hunter was quizzed on how much migration is impacting the current economic climate.RBA assistant governor, Sarah Hunter. Picture: NewsWire / Martin OllmanDr Hunter said she is “often asked” about the knock-on contribution on inflation, adding Australia has “relatively high levels of migration” compared to other advanced economies.Australia has the eighth-largest overseas-born population in the world, with a third of residents born overseas, Australian Bureau of Statistics (ABS) data shows.“While migrants do when they come here, they do add to demand. They need somewhere to live. They go out shopping, they’ll eat in restaurants,” Dr Hunter said.Population-growth fueled demand and supply in the economy is balancing out, the RBA says. Picture: Getty“They add to demand but many of them, and certainly if they’ve come on a working visa, will definitely contribute to labour supply as well and so they add to demand, but...