Keep rates steady despite economic improvement

There is "virtually no doubt" interest rates should remain at the historically low rate of 0.1 per cent, according to the Shadow RBA at The Australian National University (ANU). The call comes despite the economy improving and Australia's management of the COVID-19 pandemic. The RBA Shadow Board says Australia's improved economic indicators include a drop in official unemployment from 6.4 per cent to 58 per cent between January and February. The Shadow Board attaches a 99 per cent probability that rates should remain steady and a mere one per cent probability that an increase is appropriate. Shadow RBA Chair, Dr Timo Henckel, says Australia's "headline labour market statistics continue to improve". "The official ABS unemployment rate fell significantly from 6.4 per cent in January to 5.8 per cent in February," he said. "In the same period, total employment increased by 88,700, almost all attributable to a change in full-time employment.
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