Australia’s unemployment rate jumps to 4.5% with markets slashing chance of more interest rate hikes

The rise in unemployment will provide the RBA with more reason to hold off on a fourth interest rate hike, as central bank officials juggle worries about spiking inflation and the slowing economy. Photograph: Steven Saphore/AAP

Australia’s unemployment rate has jumped to 4.5% in April to reach the highest in about four and half years, amid fears rising interest rates and the global oil crisis will smash economic growth.

The surprise rise in unemployment will provide the Reserve Bank with more reason to hold off on a fourth rate hike at its next meeting in June, as financial markets slashed the chance of more interest rate rises this year.