Reserve Bank of Australia Governor Philip Lowe spoke at the RBA Dinner overnight
And, he had a message for the people who insist 'its different this time' ...
Mike had the headlines and more here: RBA's Lowe says stimulatory policy continues to be appropriate
The Australian financial press has covered the speech, as you'd expect; in summary from the Australian Financial Review article:
- Lowe expressing growing confidence that a strengthening economy will deliver widespread wage gains to households
- Warned the process was likely to take some time before it stoked inflation and higher official interest rates.
- Noted Australia's banks are now "comfortably within" limits imposed by regulators on lending
- A fresh note of caution about China
Plenty more at the AFR piece here: RBA governor Philip Lowe says low wages no 'permanent state of affairs'
And, on the people who argue its different this time and wages will not pick up, Lowe:
- On record low wages growth, which is hampering the ability of households to work off debt, Dr Lowe insisted that "I don't see it as a permanent state of affairs".
- It is likely that, as our economy strengthens and the demand for labour picks up, growth in wages will pick up too."
- the "laws of supply and demand still work"
- evidence that in pockets of the economy where demand for labour is strong, wages are increasing more quickly than they have for some time."The Reserve Bank's central scenario is that, over time, this will become a more general story."