The hiring boom in Australia continued in June, sending the unemployment rate to its lowest level in almost 50 years. Would you like to share your opinion regarding how much the RBA will raise interest rates?
The Australian Bureau of Statistics on Thursday reported the national jobless rate tumbled by 0.4 percentage points in June to 3.5 per cent. It is at its lowest since August 1974 when it was 2.7 per cent. The figure was much lower than expected by financial markets that had been tipping a slight fall from 3.9 to 3.8 per cent.Employment rose 88,400 from May, easily beating estimates of an extra 30,000 roles, as more people entered the workforce.The low unemployment rate increases the likelihood that employers will raise wages to attract workers, increasing the inflationary pressures throughout the economy. Furthermore, I believe you have noticed that KFC, Domino's, and Pepsi have recently increased their prices. This week's rent report showed that rents were at record levels across the country.
Following a 50-basis point rise in June – the largest since the year 2000 – the RBA has once again lifted the cash rate by 50-basis points, to 1.35%.The RBA had been tipped to lift official interest rates at its August meeting by 50-basis points, to 1.85%.but Goldman expects a 75 basis point rate increase in August.
Goldman Sachs expects the Reserve Bank of Australia to accelerate the pace of interest rate rises after a stronger-than-expected June jobs report which saw unemployment decline to the lowest level since 1974.
💡Share Your Insights
Please leave a message in the comments section of this post, and share your insights about inflation and interest rates. 💸💸💸
- How much will the RBA raise interest rates in August?
- What is the impact of inflation on you?
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⏰Activity Duration
- 14 July, 2022-2 August, 2022
Comments
Such a move would take Australia's cash rate to 1.85%
With unemployment at ultra low levels in Australia, employers can be expected to raise pay levels to attract quality staff. While it is great for the employees, their wages have not caught up with the high inflation.
I believe that the RBA will almost certainly raise interest rate by 50bps in August. I do not think that 75bps is on the cards yet as Australian inflation is not as bad as the US.
Personally I think that inflation hits the poor the hardest. I have read stories that many had been evicted and became homeless. Some even used their cars as their homes. It is really sad and I wish the government can do more to help these people.
In times like this I am grateful that I have a roof over my head and food on my table. But I will definitely cut back on eating out, save more and continue to hold a diversified portfolio of assets.
@Tiger_AU @TigerStars @CaptainTiger