The Reserve Bank of Australia was correct to increase the interest rate again, one bank says.
The job market is playing its part in reassuring the Reserve Bank of Australia (RBA) that it was correct to hike up the
interest rate, according to one bank.
Huw McKay, senior economist of Westpac – which offers a range of
credit cards, among other products – said the employment industry shows that business sentiment has not been derailed by the RBA's cash rate increase, BusinessDay reported.
He added: "We don't think this is any impediment to a move in May."
Earlier this week, the RBA increased the official cash rate by another 0.25 per cent taking it up to 4.25 per cent.
But Chris Zappone, writing the article, believes the organisation is now under pressure to extend its interest rate hike after a rise in the number of full-time jobs.
Governor Glenn Stevens announced the recent increase this week and noted
Aussie credit for housing "has been expanding at a solid pace" as one of the positive views of the country's current economic situation.
By Joe Letts
