Weekly payroll data suggest that the recovery in employment has started to go into reverse and we now expect the unemployment rate to climb to 8.5% in Q3. We believe that the huge amount of slack in the labour market will push underlying inflation much further below the RBA’s 2% target than the Bank is currently anticipating. The upshot is that the Bank has more work to do.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services