An increase in the number of unemployed people in Australia could lead to further rate cuts from the Reserve Bank of Australia (RBA) in coming months, an analyst has claimed.
The central bank has already slashed its basic rate to 3.5 per cent in a bid to boost the Australian property market and encourage a rise in consumer confidence.
Talking to the Australian Associated Press, JP Morgan Australia chief economist Stephen Walters suggested the bank could make another cut as early as August following the Australian Bureau of Statistics' latest data.
The unemployment rate rose to 5.2 per cent in June compared to 5.1 per cent in May, with total employment numbers dropping by 27,000.
However, HSBC chief economist Paul Bloxham argued that these figures do not reveal any long-term trend in the jobs market.
ANZ recently kept its interest rates unchanged, arguing that a profitable banking sector is crucial in driving economic recovery.
Posted by Steve Douglas