The Australian November Labour Market report was out earlier, a huge beat:
A note via Commonwealth Securities (CommSec), an Australian securities dealer operated by the Commonwealth Bank of Australia (CBA) has a good, quick rundown of implications for policy (bolding is mine):
- Reserve Bank policymakers recently noted, "the recovery in the labour market was more advanced than expected," but also reiterated that "addressing the high rate of unemployment is a national priority." Of course the outlook for the labour market remains highly dependent on Australia's continuing success at supressing the virus with a vaccine rollout likely in the coming months.
- That said, policy settings will remain expansionary for an extended period to support the nascent job market recovery. Skills shortages, worries about the tapering of the JobKeeper scheme and the impact on business confidence from ongoing trade tensions with China present some near-term risks to business hiring intentions.
