Falling unemployment could mean no rate cuts

ABS figures released yesterday show Australia's unemployment rate fell to 4.9% in April. Economists had predicted a rise in the jobless rate to 5.3 per cent.

Citigroup economist Josh Williamson said the rise in employment may deter the Reserve from making any further cuts to the cash rate in the near future.

“The likelihood of a follow-up near-term rate cut has diminished following the fall in unemployment. The RBA will go back to watching the domestic inflation data and European developments,” Williamson said.

Source: BrokerNews