AMP Capital’s chief economist Shane Oliver predicted the cash rate would remain unchanged, citing the RBA’s satisfaction with current levels in view of the “rebalancing of the economy.”

“Strong October jobs data have likely reinforced this. While I believe house prices may keep rising, I expect their rate of increase to slow significantly,” he said.

Similarly, ING Direct’s head of treasury, said the economy is heading in the “right direction” in terms of what the RBA is expecting.

“The recent labour force data means that the Reserve Bank will be on the sidelines for an extended period,” he said.