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RBA’s labour market model needs overhaul

April 21, 2025 - 00:10 -- Admin

The Reserve Bank of Australia (RBA) is famously bad at forecasting Australian wage growth. For the past 15 years, the RBA’s Statement of Monetary Policy (SoMP) has routinely forecast stronger wage growth than has occurred. The RBA continues to make the same mistakes, with Australian wage growth falling more than projected despite the nation’s low

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