Economist at UOB Group Lee Sue Ann reviews the latest labour market report in the Australian economy.“Australia’s labour market remains tight. The seasonally adjusted unemployment rate fell to 3.4% in Oct, from 3.5% in Sep. Seasonally adjusted employment increased by 32,000 people in Oct, double the expectations for a gain of 15,000. But thefor labour demand is weakening. Labour supply, on the other hand, is increasing on the back of the rebound in migration.
“This is why we think the Reserve Bank of Australia will soon pause in the current rate hiking cycle. The nextmeeting is on 6 Dec, and that will be the final meeting of 2022. We are penciling in another 25bps hike, which will take the OCR to 3.10%. Thereafter, we look for a hold.” If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.