Australian Treasurer Jim Chalmers spoke on Australia public broadcaster TV show over the weekend, He said he expects a substantial economic slowdown and for unemployment to pick up as inflation eases
- “As the Reserve Bank forecasts and the Treasury forecasts have inflation moderating over the coming months, they do have a tick up in unemployment as well”
- “I think the slowdown in our economy is expected in those forecasts to be significant, and that will have implications for the unemployment rate”
- growth slowdown is “a consequence of higher interest rates and global economic uncertainty”
None of this is surprising, Chalmers reiterating existing forecasts from the RBA and Treasury.
Reserve Bank of Australia Deputy Governor Bullock will be the new RBA Governor from September 18.
She'll be dealing with higher unemployment in the Bank's considerations on policy setting ahead.