RBA signals labor market softening faster than expected
RBA Assistant Governor Christopher Kent says unemployment signs are easing faster than the central bank thought.
The Reserve Bank's job market is cooling faster than officials predicted, according to Reserve Bank Assistant Governor Christopher Kent. An important question is whether the softening comes from weakening demand for workers or from rising labour costs.
Kent told the market on Monday there are signs the job market has become less tight, faster than the bank thought it would. The shift matters because the RBA is trying to bring inflation down while protecting jobs.
A softer jobs market could mean the bank has less need to raise rates. Or it could mean rate cuts might come sooner.
- Christopher Kent, RBA Assistant Governor
- Speaker
- Statement made Monday
- Timing
Why it mattersHow quickly the job market weakens will shape whether interest rates stay high or start to fall. This will affect mortgage bills and savings rates for millions of Australians.
AustraliaAustralians watching rates and jobs can expect the RBA to reassess its outlook at coming meetings based on updated labour market data.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
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