Big rate cut tipped as unemployment up

Australian Bureau of Statistics figures yesterday revealed the jobless rate climbed to an eight-month high of 5.1 per cent.

Only 35,000 extra jobs were created in the first seven months of the year – less than half the number required to keep the unemployment rate steady.

Economists are tipping unemployment levels will hit 5.25 per cent this year.

Deutsche Bank chief economist Adam Boyton said: "We expect this will push the RBA to cut rates by 50 basis points as an insurance against the global slowdown."

Source: Banking Day