Australian Labour Market Rises, Central Bank Governor Signals Rate Hike Risk
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- Developments
- 1
- Repetition
- 90%
New informationRepeats or wire copies
What happened
The Australian Bureau of Statistics reported that net employment increased by 39,500 in August from July, though the jobless rate rose to 4.6%, reaching a five-year high. The participation rate also climbed 0.2 percentage points to 67.1%. Following this release, Reserve Bank of Australia Governor Michele Bullock stated that an unemployment rate between 4.5% and 5.0% could help restrain inflation.
From aol.com, theleader.com.au
Why it matters
The labour market figures and Michele Bullock's comments reinforced market expectations that the Reserve Bank of Australia board would raise interest rates. Higher interest rates can raise the cost of financing corporate investment and may lure buyers into the bond market.
From aol.com, theleader.com.au
Who's involved
- Australian Bureau of StatisticsFederal statistics agency that released the official labour force figures
- Michele BullockGovernor of the Reserve Bank of Australia who commented on inflation and employment
- Reserve Bank of AustraliaCentral bank of Australia responsible for monetary policy
Keep exploring
The entities involved
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Australian Bureau of Statistics
federal statistics and census agency of the Australian Government
- The Reserve Bank of Australia is managing monetary policy while assessing how geopolitical risks in the Middle East, including conflict status and oil flow, affect the outlook for inflation and the potential benefits of a peace deal.
- The Reserve Bank of Australia and the European Central Bank are facing global economic pressures. Data released on May 27 showed that CPI rose 0.4% in April.
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Michele Bullock
Governor of the Reserve Bank of Australia
Related events
- The Reserve Bank of Australia monitors spending data from the Australian Bureau of Statistics to inform its monetary policy decisions.
- Wage moderation has eased, which is expected to reduce pressure on the Reserve Bank of Australia.
- Michele Bullock discusses policy regarding the Australian economic outlook.
- ABS reports on the current state of the Australian economy.