Reserve Bank of Australia (RBA) governor, Phil Lowe, told Monday’s Senate Economics Legislation Committee in Canberra that wages won’t rise unless productivity increases:
“We’ve got to deliver you 2.5% inflation. It would be fantastic if we could deliver you growth in real wages of 1% or 2% a year but… if we are going to have growth in real wages of 1% to 2% a year, we’ve got to have strong productivity growth in the country. And that’s one reason why I keep talking about the productivity agenda”.
“Because we can only have growth in real wages over time if we get better at doing things”.