Reserve Bank governor Philip Lowe says wages growth needs to be “materially” higher before the central bank will contemplate stepping back from its ultra loose monetary policy settings.
The comments made at The Australian Financial Review Business Summit are at odds with the bond market, which is testing the central bank’s commitment to holding the cash rate at its 0.1 per cent setting for the next three years.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
