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VIEW: CBA Maintain Call Post-Labour Market Data

RBA

CBA note that “the message from the labour force survey has been very consistent over the last six months. The unemployment rate remains at a low and the labour market is tight, but not tightening further. The RBA expects the unemployment rate to be 3.4% in Q422 and today’s numbers are consistent with this. The key risk to our RBA call is wages. There is nothing in today’s data to change our view on wages and our call on the RBA. We expect the RBA to lift the cash rate by 25bp to 3.35% when they return in February.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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