The RBA is wrong - there is plenty of slack in the labour market as wages growth falls further

The RBA is wrong - the labour market is not 'tight'. The RBA risks compounding its recent errors if it does not admit this.
The case for a further rate cut on 1 April is materially enhanced by this disappointing result.
Wages growth has eased to its weakest pace in two years which does not happen in a tight labour market. Never.
In annual terms, wages growth has eased from 4.2% a year ago to 3.2% now which is something that even high school economics tells you only happens when there is considerable slack in the labour market.
Plenty of workers are available relative to demand - and this is even with pretty generous wages increases from the Fair Work Commission.
To the extent wages are a driver of services inflation - and they are - the RBA can slice a bit more off its inflation forecast which, like a bucket of prawns in the sun, are off. They stink,

Видео The RBA is wrong - there is plenty of slack in the labour market as wages growth falls further канала Stephen Koukoulas