RBA Deputy Governor Spells Out Why Higher Unemployment Is Needed

SYDNEY—Employment in Australia is currently above the levels that are consistent with inflation falling back to target, Reserve Bank of Australia Deputy Gov. Michele Bullock said Tuesday.

In a speech to a business forum, Ms. Bullock laid out the case for why the unemployment rate will have to rise from its current 50-year lows if the inflation rate is to return to the target range of 2% to 3% over the coming years.

“Employment…

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