If you are looking for the Reserve Bank of Australia to stop hiking the cash rate you are going to be disappointed.

This take on yesterday's data from National Australia Bank analysts is strongly suggestive of more to come from the RBA:

  • Australian GDP data yesterday rose 0.6% q/q and 5.9% y/y, slightly below consensus for a 0.7% gain.
  • The detail confirmed strong activity and broad-based inflation pressures in the third quarter with growth in the quarter led by household consumption growth, up 1.1% and supported by recovering services activity. GDP is now 6.5% above pre-pandemic levels – stronger than most major economies.
  • The income side of the accounts is in greater-than-usual focus with the RBA closely watching the evolution of labour costs and earnings. Compensation of employees was 3.2% higher in the quarter and most of that came through earnings, with average earnings per hour up 2.6% q/q, well outpacing the RBA’s expectations.

The data is here:

Westpac's take is here:

Which might cheer those looking for no more RBA rate hikes. Over the ditch, the RBNZ is hiking into economic weakness regardless though. Will the RBA do the same?

RBNZ Orr chuck norris meme

RBNZ Governor Orr is more action oriented than Reserve Bank of Australia Governor Lowe.