ANZ write "wage growth was marginally.....>

AUSTRALIA: ANZ write "wage growth was marginally lower than expected in Q4,

leaving the annual growth rate steady at 2.3% y/y. The softer number suggests

that the pass through from the earlier minimum wage rise wasn't as large as

expected. Looking at wages including bonuses, annual growth was steady at 2.7%

(improving at the second decimal place). Our diffusion index, which measures the

proportion of industries with rising wage growth, was steady at its highest

level since 2011. The slightly disappointing WPI headline number won't be enough

to change the RBA's outlook for the labour market. With labour force

underutilisation falling, wage growth is still expected to improve, gradually.

For the RBA to shift its tone from neutral to negative would require a sustained

deterioration in labour market indicators."