RBA Rate Hike Expectations Rise on Strong Job Growth

Financial markets have recently increased their expectations of another interest rate hike from the Reserve Bank of Australia (RBA).

The probability of a 25 basis point rate hike has risen to near 100% by year-end, although markets do not expect the RBA to hike at next month's meeting.

This shift in expectations follows strong job growth in June, with the Australian Bureau of Statistics (ABS) reporting an increase of 76,300 jobs, including 29,300 full-time positions. The unemployment rate remained steady at 4.4%, but this was due to a rise in labour force participation.