Australia’s minimum wage & industry award rates will rise by 5.75% from July 1

Australia's Fair Work Commission has announced its decision on the minimum wage hike.

• will boost pay for around 180K Australian workers
• there will also be a 5.75% pay rise for workers on industry award rates, this will flow through to around another 2.7 million people.

The Commission said the decision was made in light of cost-of-living pressures being felt by Australia’s lowest-paid workers but would not have “discernable macroeconomic effects”

• “The current combination of economic circumstances, namely low unemployment, falling real wages and high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term, is very unusual and presents a particular challenge in this year’s review,”
• “A further challenge is the expected sharp slowdown in economic growth over the next year.”

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The RBA is concerned to avoid a wage-price spiral Wage-price spiral A wage-price spiral is an economic phenomenon where an increase in wages leads to a corresponding increase in prices, leading to a further increase in wages to compensate for the increased prices. This creates a vicious cycle of inflation. This can happen when workers demand higher wages to cover the increased cost of living, and employers raise prices to cover the increased labor costs, leading to further wage demands and price increases. The spiral can be inflationary because it can cause a pe A wage-price spiral is an economic phenomenon where an increase in wages leads to a corresponding increase in prices, leading to a further increase in wages to compensate for the increased prices. This creates a vicious cycle of inflation. This can happen when workers demand higher wages to cover the increased cost of living, and employers raise prices to cover the increased labor costs, leading to further wage demands and price increases. The spiral can be inflationary because it can cause a pe Read this Term. They'll take this into consideration in next week's decision.

• ANZ, CBA, NAB & Westpac all expect Reserve Bank of Australia pause at next week's meeting

• ANZ raise its forecast for the RBA terminal rate to 4.35% (from 4.10%)
• National Australia Bank expect a +25bp rate hike from the RBA, but not until August

The next Reserve Bank of Australia meeting is on June 6.

• statement is due at 2.30 pm Sydney time, which is 0430 GMT and 12.30am US Eastern time

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Current cash rate:

The rise in wages is well below the inflation rate.