RBA rate hike could be mid-2019 - HSBC

Australia enjoyed a much-welcomed boost to employment figures this week, and the better-than-expected showing for the domestic Australian jobs market is prompting analysts at HSBC to lift their expectations for a rate hike from the Reserve Bank of Australia (RBA).

Key quotes

Labour market numbers for October showed that jobs growth remains robust and the labour market is tightening.

The unemployment rate held at the six-year low of 5.0%, with some states well below that level.

A tightening labour market should support a further lift in wage growth in coming quarters: we expect RBA hikes to begin in mid-2019.