This low level of wage growth is contributing to quite low rates of inflation in a range of service industries. Increased job uncertainty is likely to be one of the factors here, with consumer surveys showing high levels of concern about future unemployment.
The third general point is that despite the transmission mechanism looking somewhat different, monetary policy in Australia is still working and it is helping to support the Australian economy. The area where this is most obvious is in housing construction, where there has been a substantial lift.