HSBC expects the RBA to decide to raise interest rates for the first time by mid-2019. The Bank's analysts attributed the forecasts to the improvement in labor market data for the month of October, as data released yesterday showed strong job growth. This is in addition to the stability of unemployment rates at 5%, which is the lowest level in six years.
The bank said the growth of the sector will support a better pace of wage growth in the coming quarters and hence inflation, which will make the bank decide to raise interest rates by the middle of next year.
