Some economists expect the Reserve Bank could start increasing interest rates as early as December following much stronger than expected employment figures, which showed the unemployment rate at a 16 year low at 4.4%.
Previously, most economists hadn’t expected a rate increase until the second half of next year.
Wednesday, November 12th 2003, 9:32PM
by The Landlord
They had been expecting the unemployment rate to rise to 4.9% and for employment growth of 0.4%. Instead, jobs growth rose 1.3%.
The jobs numbers, coupled with last week’s moves by both the Reserve Bank of Australia and the Bank of England to raise rates, have resulted in the wholesale interest rate markets already anticipating a December increase in the Reserve Bank’s official cash rate (OCR).
