The Australian economy added 50,900 jobs in June, well above market expectations — but that won’t be enough to convince the RBA to hike interest rates, says AMP Capital.
The Australian Bureau of statistics released its June jobs data yesterday, showing that employment rose by 50,900 (above the market expectations of an increase of 16,500).
Commenting on the numbers, AMP Capital chief economist Shane Oliver noted that it was “high-quality” jobs being added to the economy, with 41,000 of the 50,900 new positions being full-time.
But despite the good news about jobs growth, the RBA will not be persuaded to hike interest rates next month, Mr Oliver said.
Unemployment was unchanged at 5.4 per cent, and annual jobs growth was 2.8 per cent with 339,000 new jobs created over the year.
“We remain of the view that with mixed readings on economic growth, low wages growth and inflation, and falling home prices in Sydney and Melbourne, an RBA rate hike is unlikely until 2020 at the earliest, and that the next move being a cut cannot be ruled out,” he said.
“So while the Australian dollar bounced $US0.40 on the stronger than expected jobs data, it is unlikely to be sustained,” Mr Oliver said.