Fourth rate rise due in February

The chances of another rise in official interest rates soared yesterday with the release of the latest employment statistics showing a drop in the numbers of people looking for work.

Most economists were expecting the jobless rate to rise again but the Australian Bureau of Statistics reported that 30,800 full time jobs were added to the economy in November 2009.

"This growing strength in the jobs market at this point in the recovery cycle vindicates the RBA's decision to begin raising rates earlier than other countries," said ANZ senior economist Julie Toth.

"It also raises the likelihood of another rate rise early next year in February or March, taking the cash rate to 4 per cent by the end of the first quarter of 2010."

The chances of an interest rate rise in February have increased from 45 per cent to 67 per cent according to trading on financial markets yesterday. The unemployment rate went down from 5.8 per cent to 5.7 per cent.