Australia's jobless rate hits five-year high ahead of RBA decision

Summarised from 2 outlets · Updated 18 Oct, 02:32 · Archive

Australia's unemployment rose to 4.7 per cent in September, above economist expectations, raising prospects of interest rate hold in November.

Australia's unemployment rose to a five-year high of 4.7 per cent in September, according to the Australian Bureau of Statistics, above economist predictions of 4.6 per cent for the month. Employment fell by almost 40,000, which was softer than expected. The higher-than-expected jobless figures have raised prospects of the Reserve Bank keeping interest rates on hold when it next meets on Melbourne Cup day in early November.

Unemployment is already above the RBA's forecast of 4.5 per cent for the December quarter. RBA governor Michele Bullock previously indicated that higher unemployment was needed to bring inflation down. The Reserve Bank's assistant governor Chris Kent will speak at the Commonwealth Bank's global markets conference on Monday, and deputy governor Andrew Hauser will address the Citi Conference on Wednesday. Their comments will be closely monitored for hints about the November rate decision.

NAB economist Jessie Cameron said the central bank was unlikely to increase pain for mortgage holders with another rate rise. 'We continue to see the RBA on hold from here, but the risk still sits with a hike,' she said. At its last meeting, the central bank lifted the official cash rate to 4.6 per cent, the highest level in 15 years.

How it is being reported

• Eyes on RBA for rate call hints as jobless numbers riseHigher-than-expected unemployment numbers have raised hopes the central bank will keep interest rates on hold when it next meets.Perth Now · 18 Oct, 02:02
• Eyes on RBA for rate call hints as jobless numbers riseHigher-than-expected unemployment numbers have raised hopes the central bank will keep interest rates on hold when it next meets.The West Australian · 18 Oct, 02:02

In this story: Reserve Bank of Australia · Michele Bullock · Australian Bureau of Statistics · Australia

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