Fall in Rate of Unemployment to Deliver New Hike in Interest Rates

AustralianFor 6 consecutive months now, the Australian Bureau of Statistics' labour force surveys have managed to show an upward trend, i. e., a rise in employment, which has delighted everyone as it is one of the strongest signs of an improving economy, but there is one downside to it, with the fall in unemployment, it is almost certain that the country's central bank will be hiking interest rates once again in the next policy review meeting.

In December as well, the rate of unemployment fell by 5.5%, and there were a record 11,047,100 Australians working last month, which is a rise of almost 200,000 employees and an all-time high.

In February, the Reserve Bank of Australia is all set to meet and discuss the interest rates on loans that are currently being offered, and looking at the strong figures, experts are sure that another
25-point rate lift is just around the corner.

Today, Liberal leader Tony Abbott said that the falling rate of unemployment is a sign that the Government should now seriously consider pulling back all stimulus measures that were offered during the economic crisis.

"We're not going to keep the unemployment low if we drop the bundle on reform, if we see a continued spend-a-thon by the Rudd government", Mr. Abbott said.