Pause?

Now that the RBA has it's possible tightenings out of the way for the year, commentators will be keenly viewing economic indicators to see if a pause is on the way or if continued rate hikes see us moving to the previous cycle low of 4.25%. ANZ job ads are out today which are likely to show good growth. Car sales were released last week and their strong showing indicates businesses are taking up the 50% tax bonus with gusto. What remains to be seen will be how the car sector and housing sectors hold up in the absence of government assistance come the new year. Instability in these areas will flow through to jobs. For that reason I am still leaning towards believing the RBA will pause in Feb to have a look around but acknowledge there's a good chance they'll lift to 4.25% before having a rest.