From a Goldman Sachs note on their outlook for the RBA after the employment report today
Goldman Sachs chief economist (Australia) Tim Toohey
This via Bloomberg
- Evidence increasing that Australia is at a positive transition point for nominal growth, inflation and wages
- Unemployment rate has been unchanged over 9 consecutive months (trend basis). Today's rise partly reflects a rebound in participation rate
- Q4 improvement in full-time employment will alleviate RBA concern
- If downside tail risks continue to subside and broader momentum improve as expected, RBA's next policy move will be 25bp hike in 1Q 2018
