RBA denies staff a pay rise that keeps up with inflation just hours after interest rate rise

Michele Bullock acknowledged that RBA staff were under pressure from higher living costs but argued ‘we need to balance that with our responsibilities as Australia’s central bank’. Photograph: Sarah Wilson/AAP

The Reserve Bank rejected its own staff’s requests for a real pay rise and backpay on lost wages just hours after it hiked interest rates on Tuesday.

While the RBA has repeatedly warned that inflation-matched wage growth risks pushing up consumer prices, its employees argue the bank’s own forecasts show their pay will slip behind the cost of living.