Analysts at TD Securities note that the RBA Deputy Governor Debelle’s speech at the Citi Conference on The State of the Labour Market highlighted his concerns for low wage growth despite strong employment and participation rate.
Key Quotes
“He hinted that the unemployment rate may have to fall below 5% (current: 5.3%) to stabilize inflation. The speech also highlighted a noteworthy pickup in manufacturing employment while construction employment moved closer to 10% of total employment (around its highest share of employment since the 1920s), supported by the large amount of activity in residential and infrastructure construction particularly in the eastern states.”
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