Today the latest Labour Force data came out from the ABS and it surprised everyone who watches these releases. Employment is up (full-time stronger than part-time); working hours are up; participation is up, unemployment is down and the demand-side outstripped the supply-side, so the unemployment rate falls by 0.1 percentage points. Everything about that is good. Several commentators are now saying that the RBAs decision on Wednesday to put the short-term interest rate up is now vindicated. I don’t think so. Things remain grim and that last thing we need now is any contractionary policy impulse.