It’s time for the RBA to admit its fears of a wage-price spiral were misguided – and cut interest rates

‘The [RBA’s] increase in interest rates was done to kill a boom in spending that was not actually happening. The increase was done to kill wages growth that was not occurring.’ Photograph: Steven Saphore/Reuters

The latest wage growth figures should make the Reserve Bank cut rates in December as their absurd worries about a wage-price spiral have been completely blown to bits.

Six years ago, Gareth Hutchens and I wrote a special report titled “Whatever happened to wage rises in Australia?” It’s kind of annoying how well it holds up.