RBA rejects staff's demand for inflation-matching pay after rate hike

Hours after the Reserve Bank of Australia announced a policy rate increase, it refused to grant its staff a wage rise that would keep pace with inflation. Governor Michele Bullock noted that many Australians are facing real-wage cuts, but the bank's latest three-year offer of 9.5% - split as 3.7%, 3% and 2.8% - was previously rejected by 54% of employees in July. The Finance Sector Union, representing the workforce, is demanding an 11% increase over three years or adjustments that match inflation, plus work-from-home protections and back-pay for one outlet pay period.

The RBA has declined these demands and could not reach an agreement at the Fair Work Commission. Staff morale appears low, with concerns that management is prioritising public perception over employee welfare. A new vote is expected between 15 and 19 October, shortly after the federal public-service pay review, which seeks a 15% rise over three years.