Job advertisements recovered marginally in June, fueling speculation that the RBA could lift rates sooner rather than later.
According to the latest Job Advertisement series by ANZ, job adverts recovered just over half of the 6.5 per cent decline recorded in May, with a rise of 3.7 per cent in June.
But while the positive data could force the RBA to tighten its stance on monetary policy, ANZ head of Australian economics and property research Ivan Colhoun said the RBA would be prudent to take a wait and see approach with rates for the remainder of the year.
“ANZ now expects the RBA to leave interest rates unchanged for the remainder of 2011, with the next increase not expected before February 2012. Further weakness in advertising over coming months would put pressure on this view, however, the economy is expected to benefit from some broadening of the positive effects of the mining boom, plus a strengthening in US growth from lower oil prices and as the supply chain effects of the Japanese earthquake moderate,” Mr Colhoun said.