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Warning Signs That Could Sway RBA on Rates Are Flashing Amber
Signs are emerging that a two-year hiring burst that cut Australian unemployment by almost a percentage point is starting to cool. Labor market resilience has been central to the Reserve Bank optimism, but the prospect of slower hiring and a jobless rate drifting higher would make it tougher to maintain its “glass half full” approach. Such a turn would erode the likelihood of faster wage growth and inflation heading back toward the midpoint of the RBA’s 2-3 percent target. Then there’s the general election that’s set to be called by May. In the lead up to recent ballots, business has hunkered down on hiring ... (full story)