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

<p>This snippet from Scotia gave me a giggle … the RBA's own staff may not believe the Bank can hit its CPI target:</p><p>Australia updates CPI for July on Tuesday evening (ET) ahead of the RBA’s expected hold on September 5th. </p><p>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. </p><p>The RBA’s own staff could be viewed as either </p><ul><li>a) seeking to make up for a real wage cut to date, </li><li>and/or b) signalling low faith in durably hitting the RBA’s 2–3% inflation target</li></ul><p>Bullock' speech:</p><ul><li><a href="https://www.forexlive.com/centralbank/rba-deputy-governor-michele-bullock-speaking-tuesday-climate-change-and-central-banks-20230828/" target="_blank" rel="follow" data-article-link="true">RBA Deputy Governor Michele Bullock speaking Tuesday: "Climate Change and Central Banks"</a></li></ul><p>The CPI report Scoita is referring to is due Wednesday:</p><ul><li><a href="https://www.forexlive.com/centralbank/preview-of-australian-july-inflation-data-due-mid-week-a-key-release-for-the-rba-and-aud-20230828/" target="_blank" rel="follow" data-article-link="true">Preview of Australian July inflation data due mid-week. A key release for the RBA and AUD.</a></li></ul><p>Reserve Bank of Australia Deputy Governor Bullock takes over as Governor in September. </p>

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