RBA advocates patience on rates, wages

August 11, 2017

People are getting used to the current subdued rate of wages growth, RBA Governor Philip Lowe says.

Reserve Bank of Australia head Philip Lowe says many people are getting used to lower growth in their real wages.

"Many now see this as more than just a temporary development, with wage increases of two-point something per cent now the norm," Dr Lowe told a parliamentary House economics committee hearing on Friday.

The central bank is prepared to be patient on rates, Dr Lowe said, as it seeks to strike a balance between the benefits to the economy of monetary stimulus and the risks associated with rising levels of debt.

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