The interest rate-cutting cycle has at least another round to come, with the economy crying out for another kick-along to foster business and employment growth, CommSec economists say.
Since the cash rate was reduced to 1.5%, there has been much debate about whether the Reserve Bank would sit back for the rest of 2016 to assess the impact.
And with unemployment — one of the central bank’s key rate triggers — tracking lower in the past few months, there’s a strong argument for the RBA to pause, some analysts have said.
But the latest regional breakdown of jobless figures released by the ABS adds more colour to the palette which, with an unemployment rate of 5.7% in July, appears deceptively rosy.
Across Australia, it’s a patchwork quilt of regional success stories and struggles. For Victoria, the best performing region is Melbourne’s inner south, with a jobless rate of 4.3%. The worst is the city’s western suburbs, at 7.8%.
Sydney’s eastern suburbs holds the mantle as the nation’s best performing region for employment, with an annualised jobless rate of 2.7% for the year to July. But in the Queensland outback the jobless rate is 13.7% and in WA’s second-largest city of Mandurah, it’s 10.5%.
CommSec chief economist Craig James says low inflation means the Reserve Bank has the opportunity to deliver another cut to the cash rate as early as November.