TD Securities said testimony from Reserve Bank of Australia officials to parliament signalled the central bank is unlikely to be considering imminent rate cuts, with recent data coming in broadly in line with or slightly stronger than expectations.
- Reserve Bank of Australia Governor Bullock says tightness remains in labour market
- More from RBA Gov. Bullock: In a very good position on inflation
- More from RBA's Bullock: RBA has room to move if the global economy takes a bad turn
Governor Michele Bullock told lawmakers that while August employment showed some easing, the labour market overall remains “close to full employment.” Assistant Governor Sarah Hunter added that there are signs the economy is entering a “cyclical upturn.”
TD said the RBA is unlikely to commit to any near-term policy change, preferring to keep its options open. It added that the case for rate cuts this year is getting harder to justify unless the labour market weakens materially.
