Job Growth May Impact Mortgage Rates and Borrowers

The increase in job numbers, almost double what was forecast, is positive news for the unemployed, but may diminish expectations of an RBA rate cut.

A Medicare and Centrelink office sign is seen at Bondi Junction on March 21, 2016 in Sydney, Australia. Matt King/Getty Images

Adding 47,500 new jobs to an economy that already employs 14.4 million people might seem modest, yet this figure is more than double what many forecasters predicted.

While the unemployment rate remains at 4.2 percent, this increase could be enough to prevent the Reserve Bank of Australia (RBA) from lowering the cash rate, offering no relief to mortgage holders and a flow-on effect through the entire economy—especially retailers who are pinning their hopes on Christmas.