- A BBB bank is continuing to offer leading rates in the market to attract term deposits.
- Flexibility in the 6 months is available as this is their preferred term.
- NCD activity has been quiet, with rolls going through at +45 for 3 months.
Volatile Month for Labour Market Survey
- Employment ticked up by 65K with part time employment driven the majority of this (62K part time).
- The participation and unemployment rate remained steady (participation rate 67%, unemployment 3.7%)
- This is a significant rebound from last months seasonally driven low print.
- The Labour Force Survey tends to be quite a volatile print.
- Looking at the latest 3 month average, the employment rate remains stable at 30K.
- The average rate is in line with the broader view, the labour market remains tight.
- Gradual increases in unemployment are expected which will help calm the RBAs nerves as it may dampen labour cost influences on inflation.