In some places, we are seeing long-term unemployment, involuntary part-time work, and other indicators of hysteretic effects in labour markets.18 It’s no surprise, then, that real wage growth has stagnated. The share of income that is going to labour has been falling, continuing a trend that started three decades ago (Chart 6).
Our two successive rate hikes in May and June were measured and deliberate responses to the evolving economic environment and dynamic market conditions meant to help anchor inflation expectations and temper second-round effects, firmly signalling our commitment to ensuring price stability.