With unemployment figures dropping unexpectedly this month, the signs are there that the Reserve bank won’t be cutting the official interest rate any further when it meets again. Figures dropped to 4.9 % when they were in fact expected to rise with more than 15,000 people joining the workforce in April.
The figure was expected to rise with the loss of 10 and a half thousand full time jobs falling by the wayside, however 26,000 new part time jobs were filled making the Government’s forecasted figure of 5.25 per cent a little wide of the mark.
The news of the drop in unemployment figures saw an increase in the value of the Australian Dollar and as such the Reserve Bank may stand firm and leave interest rates unchanged, rather than go through with a further rate cut.