With households now worse off than they were six years ago, and with large businesses enjoying record profits, workers would benefit from a lift in real wages, he said. “A lift in wage growth is likely to be necessary for inflation to average around the midpoint of the 2-3% medium-term inflation target,” he said. “[But] the Reserve Bank board does not see a strong case for near-term adjustment in monetary policy,” he said. Lowe said the RBA’s forecasts for gross domestic product growth and inflation were little changed from three months ago. “A reassessment of these assumptions now appears to be taking place against the backdrop of strong economic conditions globally.”

Source: The Guardian February 08, 2018 09:33 UTC