Updated
Updated · Bloomberg · Sep 22
RBA's Bullock Says 4.5% Jobless Rate Must Rise Toward 5% to Cool Inflation
Updated
Updated · Bloomberg · Sep 22

RBA's Bullock Says 4.5% Jobless Rate Must Rise Toward 5% to Cool Inflation

3 articles · Updated · Bloomberg · Sep 22

Summary

  • Michele Bullock said Australia’s 4.5% unemployment rate is still too tight and likely needs to move closer to 5% to take heat out of the labor market.
  • At a Sydney fireside chat on Tuesday, the RBA governor said that shift would ease wage and price pressures, directly linking a looser jobs market to lower inflation.
  • Bullock did not say whether she will back an interest-rate increase next week, leaving markets without fresh guidance on the RBA’s immediate policy decision.

Insights

Will sacrificing Australian jobs to hit a 5% unemployment rate actually cure inflation, or just trigger a deeper economic crisis?
If the labor market is already cooling, why is the central bank still keeping the threat of rate hikes alive?