The February jobs report in Australia obliterated expectations:

While great news the unemployment rate is still well above the pre-pandemic level and employment to population is below. Further, I noted yesterday that fiscal support for the labour market is approaching a cliff edge:

These only highlight that today's results will not rush the RBA into anything like reducing policy accommodation. The months ahead will be monitored carefully for the impact of the ending of 'JobKeeper' government employment support, now is not the time for the RBA to rethink its current stance. The RBA have forecast, and reiterated over and over, that the cash rate will not rise until unemployment drops, driving wage growth and inflation higher (RBA expectations) ... and this is not going to happen until at least 2024.

The evidence shows RBA forecasts are very, very poor indeed. Setting out a three-year time frame for any change to the cash rate is thus overconfidence from the Bank. Today's data will not. as I said, prompt any policy change (nor should it) but let's hope its a sign of further improvement to come. A rate hike for optimistic reasons would be welcome (and once more ICYMI, not yet though).

The February jobs report in Australia obliterated expectations:

The numbers today give everyone some reason to smile.