SYDNEY, March 11, 2026, 08:33 AEDT
Commonwealth Bank of Australia on Tuesday reported its internal wage growth figure held steady at 3.1% for the year to February, while jobs growth remained in positive territory. The bank said this combination could offer the Reserve Bank some reassurance ahead of next week’s policy decision. Its own labour data showed around 21,000 new jobs were added in February. By comparison, Australia’s official jobless rate stood at 4.1% in January. 1
The update arrives just a week out from the Reserve Bank’s March 16-17 meeting, following February’s hike that pushed the cash rate to 3.85%. Deputy Governor Andrew Hauser flagged a “genuine” debate on the prospect of another rise, with markets now assigning about a 50% probability to a move on March 17. 2
The move ripples through the industry. Commonwealth Bank, Westpac, National Australia Bank, and ANZ each handed February’s quarter-point hike straight to variable home-loan borrowers. CBA also raised rates on select variable-rate business loans. 3
Belinda Allen, head of Australian economics at CBA, said the bank’s own data still isn’t reflecting any wage lift despite the tighter labour market. Steady wage growth, she noted, would “give the RBA some comfort” looking forward. 1
CBA taps into salary flows from some 400,000 accounts for its Wage and Labour Insights series, providing a quicker snapshot of pay movement than the traditional quarterly wage price index. The most recent official figures had annual wages up 3.4% for the December quarter, with unemployment steady at 4.1% in January. 4
The bank has good reason to keep a close eye on that balance. Back in February, CBA delivered a record first-half cash profit of A$5.45 billion, fueled by growth in home loans, stronger business lending, and a lift in deposits. Its slice of the home-loan market stayed at 25.4%. At the time, Chief Executive Matt Comyn pointed to higher household spending, particularly in discretionary areas. Atlas Funds Management’s Michael Haynes credited the numbers to robust business banking and what he called “operational excellence across mortgages.” 5
CBA’s wage indicator tells only part of the inflation story. Hauser points to rising oil prices linked to Middle East tensions as a reason to stay wary on inflation. In contrast, softer consumer demand and labor costs suggest rushing policy could backfire, triggering a sharper slowdown and higher jobless rates. 2
CBA and the other major banks have left borrowers vulnerable to yet another round of mortgage repricing if the RBA hikes rates again next week—lenders pushed through the February hike in full. At this stage, CBA’s most recent data shows a still-tight labour market, but there’s no fresh sign of acceleration. 3
