Australia’s unemployment rate has fallen despite the Reserve Bank hiking rates at the most aggressive pace since 1989.

The jobless level in May dropped to 3.6 per cent, down from April’s 3.7 per cent. 

Last month, 75,900 new jobs were created, taking unemployment closer to March’s 48-year low of 3.5 per cent.

This occurred despite the Reserve Bank’s aggressive monetary policy tightening, which in June saw interest rates increased for the 12th time in 13 months to an 11-year high of 4.1 per cent.

The latest Australian Bureau of Statistics data has stirred fears of more interest rate rises amid fears a tighter labour market will add to inflationary pressures. 

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Borrowers are already grappling with the most severe pace of rate rises since 1989 with April’s inflation rate of 6.8 per cent more than double the RBA’s 2 to 3 per cent target. 

Australia’s unemployment rate has fallen despite the Reserve Bank hiking rates at the most aggressive pace since 1989 (pictured is a bartender in Bunbury south of Perth)

Source: | This article originally belongs to Dailymail.co.uk