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UBS On-Air: Market Moves

UBS On-Air: Paul Donovan Daily Audio 'Wages should be rising'

5 min • 20 februari 2024
The ECB releases a negotiated wage settlement index. ECB President Lagarde has repeatedly highlighted wages as a factor determining policy moves. Real wages should be rising—after so long a period of weak wage growth, rebalancing is needed. Rising real wages should not be seen as an automatic cost pressure for inflation—changing working habits and automation have increased productivity, allowing companies to pay workers more in exchange for more output.
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