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This is amusing from Andrew Boak at Goldman. How he thinks that wage growth is going to accelerate from here is beyond my understanding. Immigration has already killed it, as it is designed to do.
Without wage growth, amid falling asset prices, any drawdown in savings will be retarded.
Ergo, if the RBA hikes to 4.1%, you can take a deep Aussie recession to the bank.
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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.
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