The continued rise in the unemployment rate will probably prompt the Reserve Bank of Australia to cut interest rates to a fresh low of 0.75% at its meeting on Tuesday 1st October. And given that slack in the labour market is set to increase further, we expect rates to fall to 0.5% before year-end. But with monetary policy now firing on all cylinders, the necessity of unconventional policy is diminishing.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services