MNI BRIEF: RBA Says Inflation Lags On Wages As Rates On Hold

The Reserve Bank of Australia on Tuesday said inflation had picked up more quickly than expected, but it remains lower than in other countries and it was too early to conclude that it was sustainably within the central bank’s 2% to 3% target range.

The commentary came as the RBA left rates unchanged at the record low of 0.10%, see: MNI STATE OF PLAY: Wages Data Allows Dovish RBA March Review.

Although trimmed mean inflation is at 2.6% the RBA is strongly focused on wages growth, which it said, “remains modest.”

“It is likely to be some time yet before growth in labour costs is at a rate seen consistent with inflation being sustainably at target,” the RBA statement said.