Rate cut in June attracts strong betting
![Reserve Bank governor Philip Lowe is focused on the unemployment rate.](http://web.archive.org./web/20190518111737/https://www.afr.com/content/dam/images/h/1/c/1/k/d/image.related.afrIndexLead.320x210.p51o79.png/1558096330152.jpg)
An interest rate cut is now 80 per cent likely just 17 days after the federal election because of softening unemployment numbers.
An interest rate cut is now 80 per cent likely just 17 days after the federal election because of softening unemployment numbers.
The economy created 28,400 new jobs last month – nearly double expectations for 15,000 new positions – but with more people looking for a job the unemployment rate rose to 5.2 per cent.
Companies don't need to choose between profit and purpose, they can fix social problems by aligning their purpose with the bottom line, said Peter Yates.
Bond yields dropped to a fresh record low and the futures market is tipping a 54 per cent chance of a Reserve Bank rate cut in June.
If the futures market is right, the Reserve Bank will cut its cash rate by August - and its policy easing may not be limited to just two cuts.
Pay rises in healthcare, education and training industries were the main drivers of the wage growth.
Speculation the RBA will hold off on cutting rates to see if tax rebates coming in July provide the stimulus to get economy moving.
Some warn that the world of high debt and low interest rates will end in the fire of inflation. Others prophesy that it will end in the ice of deflation.
JPMorgan's global chief economist Bruce Kasman says central banks should keep a sharp eye on employment and inflation because it may surprise.
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