QIC says softening Australian jobs market gives RBA scope to hold rates
TLT•QIC said September employment fell by 39,300 and unemployment remained at a revised 4.7%, giving the Reserve Bank of Australia scope to hold rates steady. The weaker-than-expected report lowered market expectations for a November hike and pushed two-year government bond yields about 5 basis points lower.
1. Jobs market softens
QIC said Australia's September employment fell by 39,300, while unemployment held at an upwardly revised 4.7%, matching the firm's revised estimate of full employment. The weaker-than-expected report reduced market expectations for a November rate hike and pushed two-year government bond yields about 5 basis points lower.
2. Inflation risks remain
QIC said further easing in the labor market remains necessary to contain inflation, while the Iran war poses an upside risk to prices.
