The Reserve Bank of Australia (RBA) is expected to hold tight on rates in June following stronger than expected employment data.
According to the Australian Bureau of Statistics, the nation’s unemployment rate dropped below five per cent for the first time in a year, which AMP’s senior economist Shane Oliver says will give the RBA “breathing space”.
“Especially coming on top of strong retail and building approvals…the RBA will probably not be cutting rates in June, but economic data in Australia runs hot and cold,” he said.
“Sooner or later, we’ll return to weakness.”
Unemployment fell 0.2 per cent in April to sit at just 4.9 per cent.
Unemployment in people aged 15-24 years has fallen significantly from 13.3 per cent to 12.4 per cent.