Latest job figures suggest interest rate change is 'unlikely'

Thursday 13 October 2011

Article by Mozo

The latest jobs data published by the Australian Bureau of Statistics (ABS) mean it is unlikely that the Reserve Bank of Australia (RBA) will change the cash rate at the next meeting of the board.

RBA 'unlikely to alter cash rate'

This is according to Nomura chief economist Stephen Roberts, who told the Australian Associated Press that he does not believe it will alter until early 2012.

Figures from the ABS showed that last month, total employment rose by 20,400, which meant unemployment fell by 0.1 percentage point.

According to Mr Roberts, the jobs data is strong and it reflects the positive information about the state of the economy released recently.

"It reinforces the more positive turn in the economic numbers over the course of the past month," he said.

The cash rate is currently at 4.75 per cent, the level set by the RBA in November 2010, when it announced a 25 basis point increase.

Get more information on the latest Reserve Bank interest rates with Mozo.  ADNFCR-1761-ID-800757826-ADNFCR

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