Rate rise likely after hefty wage increase
The Reserve Bank is increasingly likely to raise the cash rate beyond 4 per cent on Tuesday, and a further two times before September, after the largest rise in the minimum wage for decades was handed down on Friday, economists say.
The Fair Work Commission on Friday increased the pay rates for 2.4 million people on awards by 5.75 per cent. But for 80,000 workers not covered by an award, the increase was 8.6 per cent, or $70 a week, up from $21.38 to $23.23 an hour, or from $812.60 to $882.80 a week.
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