RBA governor warns people may need to lose jobs to get inflation down | The Business | ABC NEWS

By ABC News (Australia)

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Speaking at a Committee for Economic Development of Australia (CEDA) event in Sydney, the RBA governor said Australia's jobs market was probably still a bit too tight and putting upwards pressure on wages, business costs and inflation more generally. Michele Bullock says she thinks a jobless rate of 4.5 to 5 per cent will probably take enough heat out of the labour market that it'll ease pressure on inflation. Ahead of the next interest rate decision on Tuesday, September 29, she said "the Middle East conflict has gone on for much longer than people thought it would. Oil prices are still elevated ...There still seems to be excess demand in the economy." "Here are some of the risks that we think might be materializing, which are going to be important for considering whether to raise rates", she says. Several RBA officials have spoken publicly in the past few weeks, warning that inflation's still running too hot. All four major banks and the bulk of money market traders believe t

Tags: Australia, abc, abc news, news, business news, finance news, economic news, economy, finance, the business, abc news australia, Michele Bullock, RBA, CEDA, Inflation, Middle East conflict, interest rates, Jobs, job markets, unemplyment