RBA staff reject pay deal worth real wage cut as 2027 looms
RBA staff rejected a three-year deal offering 3.7% in year one, then 3% and 2.8% in later years, below the 4% inflation rate.
Reserve Bank governor Michele Bullock earns $1.22 million and just got a 2.4% pay rise. Reserve Bank staff want their 2,039 workers to take cuts to real wages, meaning their pay rises won't keep pace with inflation.
Staff voted down a three-year deal offering 3.7% in the first year, then 3% and 2.8% in later years. When inflation sits at 4%, those numbers shrink what they can actually buy.
Meanwhile, bigger cracks are showing across Australia's economy. Data centre firm NEXTDC lost $2.9 billion in value when residents blocked a power-pole project, forcing it to halt expansion plans.
NAB is cutting 2,500 jobs before Christmas. The Reserve Bank board may lift interest rates on Melbourne Cup Day, making borrowing dearer and hitting mortgage holders.
Economists warn the central bank faces a nightmare scenario: if workers and firms start expecting 3% inflation to stick around, they'll demand higher pay and hike prices, strangling spending.
- $1.22 million
- Bullock's remuneration
- 2,039
- RBA staff headcount
- 4%
- Consumer price index
- 3.7%
- Year-one pay offer
Why it mattersIf rates rise and wage deals fall short of inflation, workers' purchasing power shrinks while job security erodes, hitting household budgets.
AustraliaAustralians face a tighter 2027: potentially higher mortgage payments, slower wage growth, and elevated job losses across major employers.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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