Predictions that interest rates will rise in the next few months have been reduced somewhat following a big fall in full-time employment figures.
Although unemployment figures remained steady at 5.8 per cent for the third month in a row the number of people in full time employment has been falling.
The Reserve Bank had been hinting at rate rises soon, and economists have been predicting late 2009 for the first rate hike.
TD Securities senior strategist Annette Beacher says after yesterday's weak retail and home lending figures, there is now no justification for an imminent interest rate rise.
"There were a few out there looking for an interest rate increase as soon as next month; I think almost all of those analysts have now changed their mind," she said.
"There's still a few out there looking for November - that is realistic if we start to get some better-than-expected numbers over the next month.
"But we're of the view that interest rate increases are not required until next year. I think the RBA has plenty of time to digest these mixed numbers and make a firmer decision in 2010."
The Australian Chamber of Commerce and Industry (ACCI) wants rates to remain on hold and these figures are going to support their argument.
The ACCI's Greg Evans is concerned for the econony and is worried if things get worse. Full time jobs were lost but there was not much of a rise in part time jobs.
The RBA meets again on Tuesday 6 October.
Join the discussion on Interest Rates - Up or Down?
|