RBA’s own staff could be signalling low faith in durably hitting the Bank’s CPI target

This snippet from Scotia gave me a giggle … the RBA’s own staff may not believe the Bank can hit its CPI target:

Australia updates CPI for July on Tuesday evening (ET) ahead of the RBA’s expected hold on September 5th.

New RBA Governor Michele Bullock will speak hours earlier and also faces the sticky situation presented by fighting inflation and counselling workers to behave responsibly, while its staff just rejected a proposed pay increase of 4% this year, 3.5% next year and 3% in 2025.

The RBA’s own staff could be viewed as either

  • a) seeking to make up for a real wage cut to date,
  • and/or b) signalling low faith in durably hitting the RBA’s 2–3% inflation target

Bullock’ speech:

The CPI report Scoita is referring to is due Wednesday:

Reserve Bank of Australia Deputy Governor Bullock takes over as Governor in September.

This article was written by Eamonn Sheridan at www.forexlive.com. Source