RBA Governor Philip Lowe at Universidad de Chile’s Conference that he didn’t expect the current rise in inflation to sustain, unless it led to higher wages growth.
“Is it going to reset expectations about what type of wage growth people should get, or will the spike dissipate and we will go back to the type of labour market outcomes we’ve seen before the pandemic?” Lowe said. “So there is quite a lot of uncertainty around that issue, but we are watching very carefully.”
