Australian wages are going precisely nowhere

Monday, 26 February 2018

UBS has a nice deep dive into Aussie wages:

Dovish RBA wants faster wages before hiking

UBS has long been on the dovish side of the debate on wages/CPI Our long held view since 2015 has been on the dovish side of the debate for both wages and inflation. A key driver of our view was the collapse in inflation expectations to a record low. Since then, inflation expectations have remained well below average, and still suggest ongoing low CPI in the near term (Figure 2).

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.