The Reserve Bank of Australia’s decision to leave the official cash rate on hold yesterday failed to surprise industry pundits, as new data revealed the labour market is tracking along nicely.
According to data from ANZ, job advertisements remained relatively unchanged in January, falling just 0.9 per cent.
Internet job advertising was down 0.6 per cent, while newspaper ads fell by 9.2 per cent.
As a result, ANZ’s head of Australian economics and property research Ivan Colhoun said he expects the unemployment rate to rise slightly to 5.5 per cent, up from the current rate of 5.3 per cent.
This slight rise in unemployment, however, is unlikely to force the RBA’s hand in the near term.
“I believe the RBA will take the time to assess incoming data to see if and when further monetary accommodation is required,” he said.