Australian shares jump as weak jobs data tempers RBA rate-hike bets
Businesstimes News·Australia jobless rate jumps to 4-1/2 year high as RBA bets fade
Businesstimes News·- Australia's unemployment rate has risen to 4.5%, the highest since November 2021, indicating a cooling labor market that has led traders to lower expectations for further interest rate hikes. - Official data shows a significant deviation from expectations, with a decrease of 18,600 jobs instead of an anticipated increase of 15,000, reflecting economic weakness due to high borrowing costs and energy shocks from the ongoing Iran conflict. - Following the data release, expectations for the Reserve Bank of Australia's next rate hike have shifted from June to August, as economists emphasize the softened outlook for the labor market amid recent layoffs, particularly in the tech industry.Australia unemployment jumps to 4.5% in April, highest since November 2021
Investinglive·- Australia’s unemployment rate unexpectedly rose to 4.5% in April, the highest since November 2021, amid a loss of 18,600 jobs, contradicting the forecast of a 17,500 increase. - Full-time employment fell by 10,700 and part-time jobs decreased by 7,900, while the participation rate slightly declined to 66.7%. - This data complicates the Reserve Bank of Australia's inflation strategy, increasing the likelihood of pausing interest rate hikes in June, despite inflationary pressures from energy costs.The ASX 200 is holding up. The stocks inside aren't
Market Index·Economic and event calendar in Asia, Tuesday, May 19, 2026. Japan GDP, RBA minutes.
Investinglive·- New Zealand's data has opened the calendar. - Japan's preliminary GDP data for the first quarter was released, affected by Trump's unsuccessful actions regarding Iran in March. - The Reserve Bank of Australia's minutes will be released, with Assistant Governor Hunter speaking at 9:25 AM local time.RBA delivers back-to-back hikes to 4.35% as expected, amid Middle East tensions
MSN·- The Reserve Bank of Australia increased the official cash rate by 25 basis points to 4.35% at its April 2026 meeting. - This decision follows a series of rate hikes, with three increases occurring this year amid rising inflation attributed to higher commodity prices. - The vote result was 8-1, aligning with market expectations as the RBA aims to combat inflationary pressures.