Australia’s unemployment rise in September has kept the Reserve Bank of Australia’s November policy meeting “well and truly live,” according to Westpac.
The bank said that a stronger participation rate coupled with softer hiring has introduced slightly more slack into the labour market, signalling the economy is cooling but not sharply.
Westpac maintains that a 25-basis-point rate cut remains a real possibility, though the Q3 CPI release on 29 October will be decisive. A benign inflation print would likely give the RBA confidence to begin its easing cycle, while a stronger result could delay the first move until early 2026.
