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Tosh analysis & good news from labour market

The Australian Labor Party’s fiscal proposals may not be quite as restrictive as we had thought. But we still believe that fiscal policy would be tighter if Labor wins the next Federal election. Meanwhile, the latest batch of encouraging labour market data will give the RBA additional confidence in its optimistic outlook. Our view is that any further pick-up in wage growth will be slow and the Bank won’t start tightening policy anytime soon.

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