A few interesting snippets from this piece:
- In the past 10 years wages growth alongside goods prices have been the main reasons inflation stayed below target.
- The RBA appears to be pre-empting the dampening effects of the border re-opening.
- It remains worried about the impact on wages if the number of temporary visa holders returns to the pre-pandemic levels.
Yep. It'll be interesting to see how the border reopening and the influx of workers plays out in terms of wage growth (or not). If wages are held down by an influx the RBA's patience, being slow to consider rate hikes, may very well prove to be the correct policy choice. We'll see.
