Reserve Bank says above-inflation wage deals risk causing a price spiral
Productivity gains do not offset higher wages, leading to inflation and requiring stronger monetary policy response
17 August 2022 - 17:58
UPDATED 17 August 2022 - 22:50
Worrying wage rises above the Reserve Bank’s inflation target range of 3%-6% raise the prospect of a price spiral with second-round effects on inflation, which could call for tighter monetary policy, deputy Reserve Bank governor Kuben Naidoo warned in parliament on Wednesday.
Unions are demanding a 6.5% pay rise for public servants and are undertaking a strike ballot this week...
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