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The Reserve Bank of Australia (RBA) has repeatedly stated that it will not raise interest rates until wage growth has sustainably risen above 3.0%.
This comes after the RBA repeatedly missed its wage growth forecasts over the past decade:
Thus, the RBA has stated that it will wait to see the data before tightening, rather than assuming that wage growth will appear.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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