Original article by Patrick Commins
The Australian – Page: 1 & 2 : 22-Jun-22

Reserve Bank of Australia governor Philip Lowe has downplayed the prospect of a recession, noting that the nation’s economic fundamentals are strong and the jobless rate is at a five-decade low. However, Lowe has warned of the need for wage restraint, arguing that across-the-board pay rises of five per cent or more could see high inflation become entrenched. He contends that wage increases of around 3.5 per cent are more appropriate and sustainable in the current environment. Lowe has also reiterated his view that inflation will peak at around seven per cent before falling in early 2023, but he cautions that it will not return to the RBA’s target range of 2-3 per cent for some time.

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