The governor of the Reserve Bank of Australia (RBA), Phillip Lowe, has faced fierce criticism by the federal government over remarks about Australia’s current economic situation on wage growth and interest rate rises.
In a speech made at a business dinner on Nov. 22, Lowe said that the country should not “buy into the idea that wages have to go upwards to compensate for inflation” because it could lead to a disaster situation.
“If we all buy into the idea that wages have to go up to compensate people for inflation, it will be painful,” Lowe said.
He also said that he believed that if Australia could get through this period of rising interest rates to balance out the economy, it could “be relatively painless.”…