(Australian Associated Press)
Most businesses aren’t planning to give their employees any substantial payrises in the near future, the Reserve Bank of Australia says.
RBA governor Philip Lowe expects the impacts of falls in commodity prices in early 2016 and competitive price pressures in the retail sector on inflation to eventually wane, which will boost wages.
“Some pick-up in wages growth is also expected, although wage increases are likely to remain below average for some time yet. Our liaison with businesses does not suggest that a pick-up in wage growth is imminent, but nor does it suggest that a further slowing is in prospect,” he said on Wednesday.