Oil cuts, wage rises and rate hikes
NAB Morning Call
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The RBA Is Not Yet Done, and It Has a Little Bit More Work to Do in Australia
The Fair Work Commission lifted the ward wages, what by 5.75% is that right? That's 2.4 million people on that. So is that going to cause inflation? Given that until now, wage inflation was about 3.7%, which is obviously well below the inflation rate. But is this enough to cause a bit of an uptick? Well, so all else equal, this new information implies that wages growth are likely to rise a little bit more than what the RBA was thinking. And as you say, there's all this debate around productivity, which at the moment in Australia is sprinting negatively. So that's making the job even harder.
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