RBA's Bullock Sees Higher Unemployment as Solution to Labor Market Tension

Australia's central bank chief Michele Bullock believes that a higher unemployment rate would help ease inflationary pressures by loosening the labor market. Speaking at a fireside chat in Sydney on September 22, 2026, she stated that the current jobless rate of 4.5% is 'a bit tight'.

Bullock suggested that an unemployment rate between 4.5% and 5% would likely ease pressure on inflation by removing some heat from the labor market.