Thomas Sharp

 

Education (basics)

Dynamics in the labour market are very material to the RBA

The RBA keeps an eye on the Australian labour market as it is one of the most important indicators of the growth of the economy. Labour data is a direct target of monetary policy via the RBA’s employment mandate, but also an indirect one since it so clearly affects inflation dynamics. Over the last six months or so, the unemployment rate has trended sideways and still remains at extremely strong levels. While the unemployment rate remains low and inflation elevated, there is little reason for the RBA to cut interest rates.

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