Original article by Matthew Cranston
The Australian Financial Review – Page: 4 : 18-Dec-18
The May 2018 Budget had forecast wages growth of 2.75 per cent in 2018-19, but this has been pared back to 2.5 per cent in the mid-year budget update. Wages are also expected to increase by three per cent in 2019-20, compared with previous expectations of 3.25 per cent growth. Meanwhile, growth in household consumption is also expected to be lower than projected in 2018-19, while the unemployment rate is tipped to fall further than forecast. The lower wages growth outlook may affect the timing of any change in monetary policy.
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD, KPMG AUSTRALIA PTY LTD