RBA Unlikely to Halt Rate Hike Despite Jump in Unemployment

The Australian unemployment rate has reached its highest mark in nearly five years, hitting 4.6% in August.

This is the worst result since November 2021, when the economy was recovering from COVID-19 lockdowns.

Reserve Bank governor Michele Bullock has repeatedly warned that inflation is too high, and this latest unemployment figure is unlikely to stop a rate hike next week.

All four major banks expect the Reserve Bank's Monetary Policy Board to increase its benchmark cash rate for the fourth time this year, with bond futures trading at an 86% chance of a 0.25 percentage point hike.