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John Kehoe

RBA thinks the jobs market is too strong to cut interest rates

A rate cut before the federal election now looks like only a possibility and not a done deal, putting the government and opposition on notice to be mindful of spending.

John KehoeEconomics editor

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Reserve Bank of Australia governor Michele Bullock has put the Albanese government and Dutton opposition on notice that more big election spending will force interest rates to be held high for even longer.

If they ignore her subtle message to be “very conscious” about inflation in their spending decisions, a pre-election interest rate cut by May will be far from a done deal.

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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com

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    Original URL: https://www.afr.com/policy/economy/rba-thinks-the-jobs-market-is-too-strong-to-cut-interest-rates-20241105-p5ko3e