Key Takeaways
We had previously held the view of the RBA pausing and maintaining its cash rate target at 4.10%. Given the latest jobs numbers, however, the extended period of inflation above target amidst a tight labour market poses the risk of stronger wage and price expectations becoming embedded. As such, there are risks that inflation may remain higher for longer.
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.