Despite a strong rebound in employment, Australia’s unemployment rate
unexpectedly rose to a five-year high in August. The mixed jobs report did not
change market pricing: markets assign a 95% probability the Reserve Bank of
Australia will deliver a fourth rate hike to 4.6% next Tuesday. Oxford Economics
Australia economist Oscar Guth said August job growth failed to keep pace with
labor-force expansion, easing labor-market tightness; he added inflationary
pressure also stems from oil prices, supporting expectations of a rate rise next
week.
