ACTU Withholds Inflation Data, Creating 'Blind Spot' for RBA

The Australian Council of Trade Unions (ACTU) has sparked controversy by withholding crucial data from the Reserve Bank of Australia (RBA), which could impact interest rate decisions.

EQ Economics managing director Warren Hogan said the ACTU's move creates a 'blind spot' for the central bank, as it withholds inflation expectation data that the RBA relies on.

Hogan stated that the unions are trying to support high wage claims at the industrial level and prevent interest rate hikes, but don't want to be seen as having high inflation expectations as a reason for the RBA to raise rates.

The RBA noted in its June meeting minutes that union expectations were well outside the 2-3% band, with long-term expectations of around 3.5%, which is above market forecasts of 2.5%.