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Phil Lowe remains uber-dovish - MacroBusiness
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Australian Employment Preview: Long way to recovery
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Richard Holden
RBA governor Dr Philip Lowe. Source: AAP.
The key narrative in Josh Frydenberg’s 2021 budget was the need to use more aggressive fiscal policy to drive unemployment down and wages up.
Two key pieces of data this week indicate how things are tracking.
On Wednesday the Australian Bureau of Statistics published wages data. The Wage Price Index grew 0.6% for the March quarter, or 1.5% over the past year.
This is not a fast enough rate of wages growth to outstrip inflation by much, if at all, on a consistent basis. That’s a problem but not a surprise. The economy in general, and the labour market in particular, is still recovering from the COVID-19 pandemic.
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