Australia's central bank, the Reserve Bank of Australia (RBA), may need to resume raising interest rates this year if inflation does not slow, according to money markets. The RBA is seen as the only other major central bank at risk of hiking rates, with forecasts suggesting two more rate hikes still to come. The Fair Work Commission has announced a $33 a week increase to low-paid workers, aimed at alleviating cost of living pressures. However, this increase barely keeps up with inflation and fails to repair the loss in real purchasing power experienced in recent years. Businesses face significant extra costs, leading to concerns that staff may lose hours or jobs.
Award wages will rise beyond inflation, intensifying pressure on businesses and increasing the risk that staff will lose hours – if not their jobs > https://t.co/UukdAtybN3 https://t.co/RB8gpooanJ
Here's a forecast for two more Reserve Bank of Australia rate hikes still to come https://t.co/zh5riDWOPX
The Reserve Bank will have had a small sigh of relief after the Fair Work Commission announced slightly smaller-than expected wage increases but there are more hurdles in front of interest rate relief: https://t.co/hkzLXZisDn https://t.co/RXi5K3SFTN
Jerome Powell's Federal Reserve is stuck in a self-defeating paradox that makes cutting rates more difficult, economist warns. https://t.co/C4NCiAsPno
“There is a potential accident brewing,” writes Neil Dutta at @RenMacLLC, who’s seeing a Fed accident ahead. The economy is weakening at a faster clip than inflation, meaning the Fed won’t feel justified to cut rates as much. “Bonds have room to run.” https://t.co/mPrt4IpE3E
Analysis:: Fair Work has made a pragmatic decision to award a $33 a week increase to low-paid workers, helping alleviate cost of living pressures on households while factoring in looming tax cuts and ensuring businesses do not face significant extra costs. https://t.co/XhojkIdBj5
Analysis of today's minimum wages decision from @CntrFutureWork While welcome, today's increase barely keeps up with inflation and fails to repair the loss in real purchasing power experienced in recent years. #auspol Read More: https://t.co/vDCwB70dys
RBA Seen As The Only Other Major Central Bank At Risk Of Hiking - BBG https://t.co/qW1fGfocYt
RBA caught between rock and hard place on interest rates https://t.co/zL4Ofok7Bm
Bigger ditherers than the Fed... Australia’s central bank may have no choice but to resume raising interest rates this year if inflation fails to slow, according to money markets https://t.co/j3N5fQIehp via @markets
Australia’s central bank may have no choice but to resume raising interest rates this year if inflation fails to slow, according to money markets https://t.co/4o05rygGUz