RBA to hike 25 bps on solid labour market and wages – ANZ

Aussie jobs beat expectations in headline and Unemployment Rate. Thus, economists at ANZ Bank expect the RBA to deliver a 25 basis points hike next month.

Strong Australia employment statistics

“A solid labour market result in October combined with the strong Q3 wage data yesterday points to another 25 bps hike by the RBA at its December meeting.”

“Employment rose 32K, driven by a jump in full-time employment (+47K). This exceeded the estimated 23K population increase in the month, reflecting higher immigration.”

“Unemployment and underemployment each edged down 0.1ppt to 3.4% and 5.9% respectively, taking underutilisation to 9.3%, the lowest in 40 years.”