As The Australian reports today:
"Macquarie chief economist Richard Gibbs said the RBA would also closely monitor the current round of enterprise bargaining under way at some major Australian companies for signs of potential future wage inflation.
The minimum wage, frozen in 2009 after the global downturn, was raised by $26 a week in the current financial year.
The current wage inflation rate is 4.1 per cent annualised, but is forecast to rise, particularly in WA because of the mining boom and in South Australia, where the state economy has been rejuvenated.
"On the wages front, we're starting to get a reports on the EBA negotiations pushing on," he said.
"We are seeing it in the resources sector and if we start to see outcomes that are north of 8 to 9 per cent, and with arguable full employment in some states, then the RBA is going to worry about supply-side constraints."
Mr Gibbs said the prospect of higher government spending during an election campaign and the likely flow-through to consumer discretionary spending levels would also be taken into account by the RBA."
