Involuntary part-time workers may hold....>

AUSTRALIA: Involuntary part-time workers may hold the key to the timing of the

Reserve Bank of Australia's next rate move, making it likely Governor Philip

Lowe will have to maintain his policy patience for longer. Lowe has said on

several occasions that he's prepared to be patient and wait for inflation to

rise back to 2.5%, the middle of the RBA's 2% to 3% target band, before taking

action. Until there are clear signs that is happening, it's unlikely Lowe will

start the rate hike process. An analytical paper published by the International

Monetary Fund this week suggests this process may take longer because the

relatively high level of involuntary part-time employment in developed countries

is holding down wages and so inflation. Australia's labor market slack is made

up of not just the number of unemployed workers but also underemployed workers,

a good proportion of whom are involuntarily underemployed. (MNI - For full story

visit the Main Wire at 0312 BST)