Reserve Bank of Australia governor Philip Lowe has effectively ruled out an interest rate rise until wage growth tops 3%.
The Reserve Bank of Australia is stuck, according to the economic evidence, it has to raise rates but it also should cut.
The amount of Australians in mortgage stress is the reason why wages growth and the labour market are such a problem - and a big reason for the RBA not to raise rates any time soon.
Building negotiating power is crucial for anyone looking to ask for a pay rise. But for those who can't, perhaps it's the employers' responsibility to ensure fair compensation.
For a whole lot of workers in Australia, cutting a better pay deal is very hard.
Some seem to think the RBA is bullish on growth, but reading between the lines it seems to be hedging.
The odds are the Fed will raise rates once and the RBA will cut once before the end of the year.
Incoming Reserve Bank governor Philip Lowe will face the challenges of rapid credit and asset prices growth.