If it turns out that full employment is even ‘fuller’ than we thought, getting there would be a real contribution to our third mandate, the economic prosperity and welfare of the Australian people. The level of unemployment consistent with full employment might be an invisible, but it is crucial.
If Australia truly can have lower unemployment – sustainably – policy should be used to try to get there. As the Governor explained last week, that was one important consideration motivating the Board's recent decision to lower the cash rate. Thank you for your time.