Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Reserve Bank of Australia's forecast of rising wage pressures has been confirmed by a 3.3% year-on-year rise in the Q4 Wage Price Index, according to data released by the Australian Bureau of Statistics on Wednesday.
The WPI accelerated from a 3.2% y/y pace in Q3 and is now at its highest level since Q4, 2012. Economists had expected a rise of 3.5% y/y. The WPI rose 0.8% in the December quarter, down from 1.1% in the prior quarter.
The RBA's February Statement on Monetary Policy said aggregate wages growth was expected to pick up further over the course of 2023, with growth in the Wage Price Index forecast to peak at around 4.25% late in the year. The jobs market has been tight, though there have been signs of softening. The unemployment rate rose to 3.7% in January, up from 3.5% in December.
RBA Governor Philip Lowe last week highlighted the pace of wage rises would play an important role when he was quizzed by a parliamentary committee on whether rate cuts in 2024 were plausible. (See MNI BRIEF: RBA's Lowe Says Rate Cuts In 2024 Are 'Plausible')
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.