RBA's Lowe Warns on `Insidious' Wages, Says Comfortable on Rates
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Philip Lowe.
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Australia’s central bank chief Philip Lowe warned that prolonged weak wage growth could damage the economy while adding he was “very comfortable” with current policy settings.
“If workers are getting no real wage increase year after year after year that’s insidious,” Lowe said in reply to a question after a speech Wednesday. Higher wage growth “would help get inflation back to target and I think people would feel a bit better as well, and the fact that many of us have lowered our expectations of future income growth means we’re less inclined to spend.”