Earlier this week the Australian Bureau of statistic released the latest jobs numbers which impressed for the Australian dollar. 54,200 jobs had been created up from 27,900 in July, and the prediction was for a figure below 40,000. Earlier in the month inflation numbers pushed past the Reserve Bank of Australia target rate, therefore pressure is mounting on the Reserve Bank of Australia to provide further information on monetary policy going forward.
Personally I expect the Governor to continue to deflect speculation that an interest rate is on the horizon as further Australian dollar strength could lead to a downturn in the economy and the amount of jobs being created according to the Governor himself.
My opinion is that if economic data continues to impress for the remainder the likelihood is that the RBA will tighten monetary policy early next year. This week HSBC have made similar predictions that an interest rate will occur in quarter one of next year.
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