The RBA’s shift to worrying about financial stability could be hurting Australian wages

If the RBA continues to sacrifice its inflation target on the altar of financial stability risks, inflation expectations and our wages growth will continue to languish, writes… Stephen Kirchner, University of Sydney The Reserve Bank of Australia (RBA) is making an explicit trade-off between inflation and financial stability concerns.  And this could be weighing on…

Wages growth still stuck in a rut

Private sector wages grew by just 0.4 per cent in the December quarter, while public sector wages grew by 0.6 per cent, according to the Australian Bureau of Statistics (ABS). Over the year private sector wages growth of 1.8 per cent was well behind the 2.3 per cent growth seen in the public sector. Nationally…

Is wage growth at record lows?

Shadow treasurer Chris Bowen said Australian wages growth is at record lows. Is that true? asks… Janine Dixon, Victoria University  People are hurting, people are doing it tough. Wages growth at record lows. – Shadow treasurer Chris Bowen, interview, October 9, 2016. In October 2016, the Australian economy hit a new milestone – 25 years of…

Wages growth slows to a crawl

Is it time to get ready for even weaker non-tradables inflation and even lower interest rates? It could be. The ABS Wage Price Index for Q1 2016 recorded wages growing by just +0.4 per cent in the first quarter, and by +2.1 per cent over the year. Private sector wages growth has slowed to a…

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