TD on the Australian data yesterday (ICYMI: Australia September Employment Change: +19.8K (expected 15.0K)
- Responses to Australian jobs report coming through
- More responses to the strong Australian jobs report coming through
- Still more responses to the strong Australian jobs report coming through )
TD:
- Surely RBA Governor Lowe) must be convinced by now that the labour market is more robust by the day!
- This employment report confirms that 2017 is the year of strong labour market dynamics.
- The next step ... is higher wages growth, in turn spurring higher core inflation
- Our (very) long-held view is that we expect wage inflation to pick up towards 2 1⁄2%/yr (Q3 released 15 Nov)
- Our base case remains for +25bp in May 2018 unless wages and CPI materially surprise to the upside (we look for core inflation to reach 2%/yr next week)
(bolding mine)
