Phil Lowe joins wage inflation scaremongers
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After spending years complaining of low wage growth, RBA governor Phil Lowe yesterday warned of the need for wage restraint, arguing that 5% pay rises could see high inflation become entrenched. Lowe instead wants to see real wages continue to fall with wage increases of around 3.5%:
“It’s good to start with a three,” Lowe says…
“I hope I don’t get into an environment where I’m complaining that they … have a five in front of them.
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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.