Sources: ABS; RBA. The share of the Australian population in employment has never been higher. The number of Australians in a job has increased by over 1.1 million since late 2021 and the level of employment is now almost 8 per cent above its pre-pandemic level.
While those central banks, including the Bank of Japan, have tried a variety of unconventional monetary policies, one common feature is that a flattening of the yield curve has been observed in the process. If the repair of balance sheets takes a certain length of time, the flattening could also last for that period.