The Reserve Bank of Australia is trying to engineer a “soft landing” to combat rising inflation without causing a recession, says Australian Chamber of Commerce and Industry’s Acting CEO David Alexander.
“Employers are looking for extra workers, but the RBA does have an inflation problem, it is very concerned about wage increases, specifically wage increases delinked to productivity,” he told Sky News Business Editor Ross Greenwood.
“The bank is still concerned that expectations of wages are going up and up, and that makes their job that much harder, so they’re trying to engineer a soft landing at the moment. “Too hard and it’s going to put the economy into recession; too soft and they’re going to have an ongoing inflation problem.”
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