Australia Treasurer Warns of Softer Growth, Higher Unemployment as Rates Stay High

Australian Treasurer Jim Chalmers will warn Friday that softer economic growth and slightly higher unemployment are likely as interest rates remain elevated and inflation stays stubborn, according to speech excerpts reviewed by Reuters. He is due to address the Citi A50 Economic Forum in Sydney. "Higher inflation is putting people under pressure, tighter monetary policy is weighing on domestic activity and we can see that in the softening of the labour market," Chalmers said. The Treasury is revising forecasts for its mid-year budget update due in December. The Reserve Bank of Australia has raised rates four times this year to 4.6%, while underlying inflation has held at 3.6% for months. Unemployment hit a five-year high of 4.7% in September, a year ahead of RBA expectations. Markets imply a 64% chance of a fifth hike next month to 4.85%. Chalmers cited business investment resilience, which could more than double May expectations and rise more than 5% this year.