RBA Minutes: Expect above average jobs growth in next few quarters - TDS

Analysts at TDS note that the RBA meeting minutes suggest above average jobs growth in next few quarters, and this year’s labour market has already been exceptional. 

Key Quotes

“The new information in the Dec statement was repeated “… as spare capacity appeared to have declined and more firms had been reporting difficulty finding suitable labour. The forecast was still for wage growth to increase gradually over the next year or so.” With such low expectations for wages growth, perhaps it finally surprises to the upside next year.  Upbeat on infrastructure, which is welcome as “the economy was currently operating with a degree of spare capacity and inflation was low”.”

“ Bottom line, the RBA does not meet in January, and will reconvene on Feb 6, followed by the quarterly forecast update on Feb 9.  Tidbit … the number of counts for keyword “uncertainty”: zero.”