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Commonwealth Bank of Australia said on Thursday its view that Reserve Bank of Australia will cut rates from 0.75% to 0.50% in April has been reinforced by the Aussie January labor market data, according to Reuters News. 

The Australian Bureau of Statistics reported on Thursday that the unemployment rate has risen ticked higher to 5.3% in January from December’s 5.1% and economists are expecting to rise further in the coming months. 

While the jobless rate increased, Full-Time Employment also rose by 46,200.

The CBA added further that the March meeting will be “live”, meaning the central bank may use that event to set the stage for a rate cut in April. 

The RBA kept rates unchanged earlier this month and signaled it may maintain the status quo for some time. With coronavirus fears dominating the sentiment, markets were expecting the RBA to hint at a rate cut.