..wasn't too long ago before the RBA May rate decision, the worry was that RBA might raise rates.
..now the thinking is RBA may cut sooner?
..by holding rates steady for longer, Michelle won't risk either way. No one seems to know how things would unfold, although the on-the-ground reality does not match the positive data. The RBA needs more than this job report to deliver a rate cut, says ING
Cecile Lefort\
Today’s jobs data hasn’t moved the needle for the cash rate outlook, says ING regional head of research for Asia Pacific Robert Carnell.
“The RBA needs more than this to deliver any cuts,” he said. “Any softening in the labour data is still fairly speculative at this point.”
While the moderation in wages growth is helpful, the central bank will require a lot more to bolster rate cut expectations for this year, the economist said. “The inflation data so far isn’t providing enough support.”
He said the outlook for RBA rates this year remains cloudy and a year-end cut remains possible, but only if this labour data softens more meaningfully and the inflation run-rate drops significantly, and soon.
