Economic slowdown points to Reserve Bank rate cut

The June labour force data should be telling the RBA to get ahead of the curve and drop the cash rate by 25 basis points (bp) at the next meeting, writes KPMG Australia Chief Economist Brendan Rynne.

At a glance The unemployment rate held steady at 4.1 percent in May 2025 for the fifth consecutive month. Employment fell by 2,500 people, which was below market expectations of a 25,000 increase. The slowdown points to a Reserve Bank of Australia (RBA) Board rate cut. The employment figures, released on 19 June, at a headline level, continue to show a resilience in the labour market. The unemployment rate has held steady at 4.1 percent and has been sustainably below the rate associa...

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Authors: Brendan Rynne

Published Date: 20 June 2025

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