Australia breaking news today, live energy updates and the latest headlines on July 1, 2022:

Union boss Sally McManus has doubled down on her claim that the governor of the Reserve Bank of Australia (RBA) is “out of touch” with reality, claiming the organization is “stuck in the 1970s”.

It comes after RBA Governor Philip Lowe warned on Tuesday that wage increases must be limited to 3.5 percent to avoid a 1970s-style wage-price spiral.

This led McManus to say that he lived in a “boomer fantasy land”.

She defended the comments about Today this morning.

“They’re more stuck in the 1970s in terms of thinking that people trying to get wage increases will lead to a wage price spiral,” she said.

“As if that were a unique circumstance in the 1970s. It is not like that now.

“You can see how hard it is, even to get wage increases that are half the rate of inflation.

“The point was I felt like he was out of touch with what’s going on and how hard it is for working people now, unlike in the 1970s.”