Reserve Bank of Australia To Keep Rates On Hold: BofAML

Considering the volatility of unemployment data, the Reserve Bank of Australia will likely keep rates on hold to assess the data flow for some time yet, while holding a soft easing basis, notes BofAML.

Alex Joiner of Bank of America Merrill Lynch in his June 11, 2015 research report “Australia Economic Watch” points out that Reserve Bank of Australia doesn’t cut rates when the unemployment rate is declining.

Employment growth posts strongest rate

Gleaning through the May Labor Force report, the BofAML analyst points out that employment rose by a very strong 42,000 people in the month, beating market expectations of a 15,000 person increase.

However, the solid result was...