Unemployment fall puts pressure on rates
June 11th 2010 03:59
A sharper than expected fall in unemployment could pressure the RBA to increase rates at its next meeting.
Unemployment fell by a seasonally adjusted .2% to 5.2% in May, defying expectations that it would remain static at 5.4%.
According to the Australian Bureau of Statistics full-time employment increased by 36,400 to more than 7.7m while part-time employment fell slightly by 9,400 to more than 3.2m.
The number of people looking for both part and full-time work also decreased by 13,400 and 12,000 respectively.
The RBA kept rates unchanged at 4.5% at its June meeting, but will meet again in early July to discuss further increases. With inflation in the upper end of the central bank's target range and strong employment figures likely to keep it there, there will be at least some discussion about whether the current "neutral" setting is appropriate.
Unemployment fell by a seasonally adjusted .2% to 5.2% in May, defying expectations that it would remain static at 5.4%.
According to the Australian Bureau of Statistics full-time employment increased by 36,400 to more than 7.7m while part-time employment fell slightly by 9,400 to more than 3.2m.
The number of people looking for both part and full-time work also decreased by 13,400 and 12,000 respectively.
The RBA kept rates unchanged at 4.5% at its June meeting, but will meet again in early July to discuss further increases. With inflation in the upper end of the central bank's target range and strong employment figures likely to keep it there, there will be at least some discussion about whether the current "neutral" setting is appropriate.
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