Job ads/Interest rates trending up

[Jovial Monk]

THE number of job advertisements has increased for a second straight month in a further sign the economy has passed through the worst of the global downturn and is on the road to recovery, a survey shows.

The number of jobs advertised in newspapers and on the internet rose 4.4 per cent in September, a survey from ANZ published today said.

It was the strongest pace of increase since December 2007 and followed a 4.1 per cent improvement in August.

Job ads had declined for 15 straight months between May 2008 and July this year.

ANZ acting chief economist Warren Hogan said the September data was the the best evidence to date that the labour market - and the economy more generally - was entering an "early recovery phase''.

"Looking further ahead, today's numbers confirm our expectation that the pace of decline in employment will not be as severe as envisaged six months ago,'' Mr Hogan said.

http://www.news.com.au/adelaidenow/stor ... 62,00.html

That is encouraging! But America is till struggling. I think the RBA will wait for surer signs of strong jobs recovery and maybe overseas signs of recovery and no dreaded double-dip recession. An interest rate rise now would be so discouraging!

[Jovial Monk]

So the fucking RBA didn't wait!

The Reserve Bank has responded to the improving Australian economy by lifting interest rates after five months at a record low.

The RBA lifted its official cash rate target by 25 basis points to 3.25 per cent, after holding it at a 49-year low of 3 per cent since April 8.

The decision surprised most economists, with 19 out of 20 surveyed by Bloomberg before the decision expecting rates to stay on hold for at least another month.

I think it is too early, job market is still fragile alltho recovering, America is still very weak economically and exports dipped slightly last month. Oh well, rates are still very very low, we will see.

The RBA says:

In late 2008 and early 2009, the cash rate was lowered quickly, to a very low level, in expectation of very weak economic conditions and a recognition that considerable downside risks existed. That basis for such a low interest rate setting has now passed, however. With growth likely to be close to trend over the year ahead, inflation close to target and the risk of serious economic contraction in Australia now having passed, the Board’s view is that it is now prudent to begin gradually lessening the stimulus provided by monetary policy. This will work to increase the sustainability of growth in economic activity and keep inflation consistent with the target over the years ahead.

http://www.rba.gov.au/MediaReleases/2009/mr-09-23.html

[Jovial Monk]

Joe Hockey had to bellow out some ridiculous crap about the rate "hike" to 3.25% but for the life of me I cannot recall or give a shit about what it was!