The Australian Financial Review this morning is carrying a story saying “a group of prominent central banking academics and economists” is of the opinion that “official interest rates are more likely to be higher in 12 months’ time”
Of interest (sorry …) to today’s decision point:
Pressure for further rate cuts has eased this year amid a surge of evidence that the 1.25 percentage points of cuts made last year are generating stronger retail spending, improved business confidence and the sharpest rebound in demand for labour in almost three years.
That “rebound in demand for labour” refers to yesterday’s ANZ job ads figures (+3%) showing a rise for 2 consecutive months. I don’t know that 2 months makes much of a trend in these figures, but there you go.
