Higher Australian Unemployment Needed to Tame Inflation
Dow Jones
2 hours ago
0538 GMT - Australia's labor market is easing but remains a bit tight overall, says George Tharenou, chief economist at UBS, Australia. The unemployment rate likely needs to rise further, towards 5% from 4.6% in August to be consistent with inflation slowing towards the Reserve Bank of Australia's target of 2.5% on-year, he adds. With upside inflation risks materializing, UBS still expects the RBA to hike the cash rate by 25 basis points to 4.60% next week, he adds. Tharenou expects a follow-up hike in November, following a confirmation that inflation in 3Q26 is above that forecast by the RBA.
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