Australia’s jobs growth surged past all expectations in January, alleviating fears of a deeper economic slowdown to some extent.
Reserve Bank of Australia’s (RBA) governor Lowe, however, is of the opinion that the labor market could be lagging the strong economic growth witnessed in the previous quarters.
Dr. Lowe, while testifying before the House of Representatives’ Standing Committee on Economics, in Sydney, also said that the probability of interest rates going up or down is broadly balanced.
Possible labor market is reflecting earlier strong GDP.
Lowe takes comfort from the forward-indicators on jobs.
US ability to stimulate in downturn more constrained.