RBA Gov Lowe says wage growth has not been a source of inflation

Reserve Bank of Australia Governor Lowe is testifying in parliament:

• Reserve Bank of Australia Governor Lowe is speaking Wednesday morning Australia time

Lowe says wage growth has not been a source of inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term

• RBA is in data-dependent mode
• monetary policy in in restrivice territory
• there is not a single variable that drives RBA policy decisions
• inflation expectations are well anchored, can't take this for granted
• RBA is serious about inflation target, want also to preserve labour market gains
• if inflation gets entrenched it would lad to higher interest rates and higher unemployment

more to come