Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
An unemployment rate of 4.5% with inflation back within the 2-3% target by mid-2025 would be consistent with some current estimates of the non-accelerating inflation rate of unemployment, according to Michele Bullock, deputy governor at the Reserve Bank of Australia.
Speaking at an industry event Tuesday, Bullock noted an unemployment rate at 4.5% would resemble pre-pandemic levels. “In other words, the economy would be closer to a sustainable balance point,” she said.
MNI reported in May that the RBA believes the tight labour market and strong wage growth shows unemployment remains below the level compatible with stable inflation (see: MNI POLICY: RBA Believes Unemployment Likely Below NAIRU). However, some ex-staffers have called on the RBA to cut its estimates (see: MNI: RBA Needs To Cut NAIRU Estimate - Ex-Staffers).
Bullock continued: “Our goal is to return the labour market (and the market for goods and services) back to a level more consistent with full employment. We think this can be achieved if employment and the economy more generally grow at a below trend pace for a while. This would help to bring demand and supply into better balance and give us the greatest chance of securing sustainable full employment into the future.”
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.