The debate about wages is the issue this week, sparked by RBA Governor Phil Lowe telling an audience in Sydney that regular wage rises of between 4-5% made it more difficult to return inflation to the Bank’s target range of 2 to 3%. Dr Lowe said that the “anchor point” for wages growth was 3.5%, but with inflation set to hit 7% later this year and remain above recent averages for a number of years, the Governor’s comments have complicated Labor’s campaign pledge to fix low wage growth so that workers aren’t go backwards in real terms.