Goldman Sachs: Q4 improvement in full-time employment will alleviate RBA concern

Economist at Goldman Sachs provides a brief insight on the future policy course of the RBA, particularly in light of today’s Aus jobs report.

Key Headlines via Bloomberg:

Evidence increasing that Australia is at a positive transition point for nominal growth, inflation and wages

Unemployment rate has been unchanged over 9 consecutive months (trend basis). Today's rise partly reflects a rebound in participation rate

Q4 improvement in full-time employment will alleviate RBA concern

If downside tail risks continue to subside and broader momentum improve as expected, RBA's next policy move will be 25bp hike in 1Q 2018