RBA Eyes Jobs Data and Wage Price Index for Interest Rate Clues

The Reserve Bank of Australia (RBA) will be keeping a close eye on upcoming jobs data and wage price index, as it navigates interest rate decisions. In a 'fireside chat' with Brighter Super chief executive Kate Farrar, RBA deputy governor Andrew Hauser is set to discuss the economic outlook and implications for interest rates on Wednesday.

The Australian Bureau of Statistics (ABS) will release the jobs data on Thursday, which is expected to show an increase of around 10,000 employment in July. ANZ economists forecast a rise in unemployment from 4.4% to 4.5%, while IG market analyst Tony Sycamore notes that a stronger-than-expected number would keep the tightening risk alive.

The RBA has been concerned about inflation pressures due to a tight labour market, but ANZ economist Jasmine Zheng suggests that the jobless rate may edge up due to a small uptick in job ads and an improvement in the employment index.