๐ช๐ฎ๐ด๐ฒ๐ ๐๐๐บ๐ฝ ๐ญ.๐ฏ% ๐ถ๐ป ๐ฆ๐ฒ๐ฝ๐๐ฒ๐บ๐ฏ๐ฒ๐ฟ ๐ค๐๐ฎ๐ฟ๐๐ฒ๐ฟ
Wages are growing at very high rates, but one prominent economist believes that will not cause the Reserve Bank of Australia (RBA) to raise the cash rate at its next meeting in December.
The average workerโs wages in the September quarter were 1.3% higher than the quarter before, according to new data from the Australian Bureau of Statistics (ABS) โ the biggest quarterly increase in the 26 years the ABS has been recording this data. Wages were also 4.0% higher than the year before โ the highest reading in 14 years.
Stephen Koukoulas said these wage increases reflected the โtight labour market with unemployment very, very lowโ.
โThere's nothing there to be of any concern to the RBA or to markets or, indeed, to the inflation outlook โ inflation is still heading significantly lower,โ he said.
The reason the RBA has been raising the cash rate has been to slow the economy, thereby reducing inflation. If inflation is falling of its own accord, there may be no need for further rate rises.
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