With the figures released by the Australian Bureau of Statistics survey revealing that 26,900 new jobs, seasonally adjusted, were created in the month of May, there are speculations that the stronger-than-expected employment growth may keep the interest rate hikes by Reserve Bank of Australia (RBA) on the agenda.

The job growth in May, which brought down unemployment to 5.2 percent for the month, was much stronger than the average estimates made by the Bloomberg-surveyed financial institution economists, who had projected that employment in May will rise by 20,000; with unemployment remaining at 5.4 percent.

Though the increase in employment in May takes the figures of total jobs created since August last year up to 283,600, as per the Australian Bureau of Statistics, still recent confidence and business conditions data hint at the possibility of a notable slowdown in the country’s employment growth in the coming months.

In the opinion of most economists, the RBA, which signaled a pause in interest rates hikes in early June, will likely remain sidelined at least until August – the time when the second quarter inflation data comes in.

Further noting that the RBA is unlikely to raise interest rates while chaos persists in Europe, JP Morgan economist Helen Kevans said: “We do think the RBA will sit on the sidelines for the time being, that said we are expecting another two rate hikes by year end.”