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RBA tells workers to take a pay cut to help the economy | Property Insiders

Reserve Bank Governor Philip Lowe has been keen to tell us his view on what’s ahead for inflation, what he’s planning to do about it and what is likely to happen to interest rates.

Only last year he said the RBA wouldn’t increase interest rates until they saw signs of strong “real” wage growth.

But last week he told workers that they should not be looking for wage growth to match inflation, in other words, if they don’t accept cuts in “real” wages, then their greed will be responsible for a level of inflation that would be difficult to control without sinking the economy.

There are lots to unpack from this discussion so I’m looking forward to my weekly Property Insiders chat with Dr Andrew Wilson, chief economist of My Housing Market.

01:32 — Across-the-board wage hikes a ‘risk to economy’: Philip Lowe
05:46 — Headline CPI of 7% by end of the year
08:10 — NSW Stamp Duty reform
10:10 — Early Winter Auction Markets Holding Steady – More or Less

You can also read the full article on Property Update: https://propertyupdate.com.au/property-news-headlines-forecasts/

If you’re looking for Direction, Certainty, and Wealth Producing Results in property and wealth creation why not get my team at Metropole to discuss your options: https://metropole.com.au/enquiry/

Written by Michael Yardney

Comments

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  1. LP reacted d ryt way, she is Savilaa.Uno need of over drama, or over consider ations. She don't deserve *considerationsh. Lp പറഞ്ഞ പോലെ,, ജീവിതം തുടങ്ങിയല്ലേ ഉള്ളു, പഠിക്കട്ടെ.

  2. Every cycle is a little different. It seems the most recent boom was driven by interest rates cuts. I wonder if the opposite will be true.

    I’m not sure the past data that shows interest rates rises and property rising will occur.

    The debt profile is totally different. 7% cash rate now is the same as the 17% in the 90s apparently. 7% while unlikely isn’t impossible… 😮

  3. Paycut is the most stupid suggestion ever heard, in time of high inflation and monetise of debts. Swiping out the middle and lower class.

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