RBA’s Lowe: Low probability of sudden revival in wages, inflation in Australia
|Additional headlines crossing the wires from the RBA Governor Lowe, as he makes a scheduled speech on "The Labour Market and Monetary Policy" at the Anika Foundation Luncheon, in Sydney.
Main Points:
Not seeking to stimulate rapid increase in inflation as that carries financial stability risks
Stability of unemployment has "allowed us to be patient"
Central scenario remains for gradual rise in underlying inflation
Low probability of sudden revival in wages, inflation in Australia
Gradual lift in wages growth is central to inflation outlook
Labour market has performed well in recent times, on a number of measures
Sees welcome pick up in employment across country, likely to continue
But underemployment is elevated and job security has become an issue for more people
Growth in average hourly earnings slowest in many decades
Persistent weakness in wages has lowered expectations of future income growth
Impact on expectations is more than just temporary
Increased competition from globalisation, technology eroding job security
Also read: Australian Q2 CPI misses expectations, RBA trimmed mean in line
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