Australia’s peak industry group said the country was at risk of a “death spiral” of wages, inflation, and interest rates.
“We are unfortunately in a period where we are going to see increasing interest rates if we continue to see calls for wage increases that are not sustainable,” Australian Industry Group CEO Innes Willox told Sky News Australia.
While noting the upcoming minimum wage decision by the Fair Work Commission, Willox said interest rates would continue to rise if calls for unsustainable wage increases persist.
The comments come after the Reserve Bank of Australia (RBA) increased the cash rate by 50 basis points, surprising the consensus….