RBA says jobs market too tight to control inflation

Extreme competition for workers in a tight labour market risks keeping inflation higher for longer. (Flavio Brancaleone/AAP PHOTOS) (AAP)

The jobs market is too strong and the unemployment rate too low for the Reserve Bank to stamp down inflation.

RBA deputy governor Michele Bullock says an unemployment rate of around 4.5 per cent is roughly the lowest possible level that's consistent with the RBA's two-to-three per cent inflation target.