RBA Deputy Governor Guy Debelle spoke early.....>

RBA: RBA Deputy Governor Guy Debelle spoke early Tuesday morning, in a speech

titled "the state of the labour market."

- Debelle set out his baseline expectations, noting that he believes that

employment growth will be a little above trend over the next 6 months. Debelle

also pointed to the vacancy rate, which he identified as high, relative to the

current size of the labour force.

- On the broader economic front, Debelle believes that above average GDP growth

will result in a gradual reduction in spare capacity, which will lead to a

gradual increase in both wages & inflation.

- On future dynamics of the labour market, Debelle suggested that unemployment

may fall further than it has done in previous instances before wages pick up.