Westpac calls on RBA for a rate cut

Westpac has urged the Reserve Bank of Australia (RBA) to consider cutting rates in the near future to prevent unemployment rates from increasing.

Bill Evans, chief economist at the former, said in a piece for Business Spectator that there is "no time to waste" if the central bank wants to prevent the number of people without jobs spiralling.

However, he observed that the latest monetary policy statement by the RBA did not feature any reference to discussions about policies that needed to be tightened further.

"Easing monetary conditions are essential to avoiding a damaging rise in the unemployment rate," Mr Evans asserted.

The expert observed that labour markets often take some time to respond to changes in policy and that this means decisions should be made sooner rather than later.

Interest rates have remained at 4.75 per cent since November last year, when the RBA pushed it up by 25 basis points.

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