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Job figures may send interest rates up

Economists say today's soaring employment figures may put further pressure on the Reserve Bank to lift interest rates as early as next month.

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Source: AAP


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Economists say ongoing strength in the domestic labour market could put further pressure on the Reserve Bank to lift interest rates as early as next month.

Australia's unemployment rate is unchanged at 5.1 per cent for June which is the lowest jobless figure as well as the lowest number of unemployed workers at 598,400, since January last year.

The Bureau of Statistics says 45,900 jobs were created in June, triple the market forecast of 15,000

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JP Morgan economist Helen Kevans says the improvement in the labour market could accelerate wage rises and add to pressures on inflation.

SBS's Ricardo Goncalves blogged that economists also think the unemployment results may

'reinforce the bank's view that rates are on the way up'

National Australia Bank senior economist David de Garis says the job data brings into focus the next consumer price index report due in three weeks.


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