The large wage increase of at least 5.75 per cent for about one in five workers has likely locked in another interest rate rise by the Reserve Bank of Australia next Tuesday.
The federal government’s wage-setting system is now working at cross purposes with monetary policy’s fight to contain inflation.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
