Australian Labour Market Rises, Central Bank Governor Signals Rate Hike Risk
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- Developments
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- Repetition
- 94%
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
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The entities involved
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Australian Bureau of Statistics
federal statistics and census agency of the Australian Government
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Michele Bullock
Governor of the Reserve Bank of Australia