Jobs growth puts pressure on RBA

By Mozo ·

The Reserve Bank of Australia (RBA) is under pressure to hike interest rates again this year following strong jobs data, a market analyst has said.

Official figures show full-time employment rose by 53,100 to 7.9 million last month, while part-time employment was down by 22,100 to 3.35 million.

In addition, the data revealed a sharp fall in the jobless rate to 5.1 per cent, meaning that unemployment is reducing closer to levels that have bred inflationary pressures in the past.

Speaking to the AAP, Nomura Australia chief economist Stephen Roberts suggested that the new employment figures made it "highly likely" the RBA would increase interest rates in November.

"The unemployment rate, down at 5.1 per cent, is getting mighty close to that level where the Reserve Bank is going to get much, much more worried about capacity constraints going forward," he said.

"So I think this tends to firm up a lot of expectations that the Reserve Bank will be back to raising rates, probably in November."

On Tuesday (September 7th), the RBA opted to keep the official cash rate at 4.5 per cent for the fourth consecutive month.

This article is brought to you by Mozo – Helping you compare interest rates
 ADNFCR-1761-ID-800061162-ADNFCR