HSBC Australia chief economist Paul Bloxham has warned Australia's unemployment rate 'will grind higher' potentially forcing thousands out of work, before the Reserve Bank considers any cut to interest rates.
HSBC Australia chief economist Paul Bloxham has warned Australia's unemployment rate"will grind higher" potentially forcing thousands out of work, before the Reserve Bank considers any cut to interest rates.
The RBA elected to leave rates on hold this month, as the bank attempts to guide the economy down the so called"narrow path" toward lower inflation whilst also maintaining near record levels of employment. Picture: NCA NewsWire/Monique Harmer "The unemployment rate at the moment it's risen from three and a half to four and we think that the unemployment rate will probably have to get up closer to five per cent.
The RBA has suggested unemployment may need to hit 4.25 per cent before it is"consistent" with bringing inflation back to target, an increase which could cost approximately 35,000 jobs. "We haven't been able to do it before, right, If you look at history and you look at occasions when you've tried to try to bring inflation down a long way, you've needed a bigger slowdown in the economy," he explained.
RBA Paul Bloxham Inflation Labour Market KPMG Unemployment HSBC Michele Bullock Interest Rates
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