RBA 'unlikely to raise rates on the back of strong employment figures'

Monday 11 July 2011

Article by Mozo

Recent figures indicating an improvement in the nation's employment figures are unlikely to prompt the Reserve Bank of Australia (RBA) to raise interest rates, it has been claimed.

Interest rates 'unlikely to rise due to strong employment figures'

Speaking to the Australian, Commonwealth Securities economist Savanth Sebastian noted that despite a rise of 59,000 in the number of full-time jobs last month, the unemployment rate remained at 4.9 per cent.

He described the job market as being in "reasonable shape", but added that the results last month were in sync with the RBA stance that it is not "overly tight".

"The RBA will remain hesitant about increasing interest rates any time soon," he asserted.

Figures from the Australian Bureau of Statistics revealed that in June, the number of people without a job fell by 2,600 to 591,000.

While there was a surge in the full-time employment figures, this was offset in part by the 35,600 drop in part-time positions held.

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