In the face of fewer employment opportunities over recent years, particularly in resource-related industries, there has been a decline in the (net) number of immigrants arriving to seek work. While we’d expect the labour supply to respond to economic conditions in Australia relative to those overseas, the adjustment has been more pronounced than earlier anticipated.
The latest market indicators suggest that uncertainty surrounding the lift-off date has intensified considerably amid the possible fallout from the coronavirus. There is no disputing the fact that support in the form of accommodative monetary policy is needed in order for inflation to approach our aim.