Data released this week showed that Australia's labour market remained tight in October, while wage growth accelerated to a 14-year high in Q3. However, with leading indicators suggesting that the labour market will soon slacken in earnest, we remain confident in our view that the RBA won't tighten policy any further. Elsewhere, the government announced that it would shelve funding for several public works in its pipeline. Although the move is unlikely to have a major impact on aggregate demand, it could help ease capacity pressures in the overstretched construction sector.
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