The Reserve Bank of Australia has a two prong mandate:
- price stability (keep inflation in a 2 to 3% band or so)
- full employment
- (a stable currency if you insist on a third prong)
While inflation has been rising here in Australia, a concern for the RBA, the labour market had been showing signs of deteriorating. This posed a (small) dilemma for the RBA, if the labour market kept deteriorating it'd hamper the fight against inflation. That cocnern has been put on hold for now with this jobs report:
Like it say above:
- The unemployment rate dropped.
- Employment change is twice what was expected.
- Full time jobs surged.
There will be no interest rate cut from the Reserve Bank of Australia in the immediate future, I think we can reassess this perhaps towards the end of Q1 next year. The RBA is on hold until then.
The Australian dollar jumped after the jobs report.
