CBA:
- The labour market data, coupled with the decline in wages growth,supports ourview that the non-accelerating inflation rate of unemployment (NAIRU) is comfortably below the RBA’s implied estimate of 4.5%.
- But the labour market data today does not strengthen the case for a February RBA rate cut(indeed it weakens it).
- Notwithstanding we stick with our call for a 25bp rate cut in February given our expectation for the Q4 24 trimmed mean CPI to come in below the RBA’s forecast.
- The December labour force survey, due 16 January, will also be a key input into the February RBA Board decision
ANZ:
- “Softer economic data from the recent national accounts
release raised the risk of a February cut, but this labour
market result offsets that risk somewhat”
NAB:
- “There is one more employment print and the Q4 CPI ahead of
the RBA’s February meeting. While we expect Q4 CPI to be a little below the RBA’s
November forecast, that alone is unlikely to be enough to see
the RBA cut in February given the labour market continues to
suggest little urgency for the RBA to adjust policy settings.
The data is here:
This article was written by Eamonn Sheridan at www.forexlive.com. Source