Australian Treasurer Jim Chalmers predicts that increased interest rates and a slow global economy will raise the nation’s jobless rate from a 48-year low.

The Reserve Bank of Australia (RBA) recommends a 4.5% jobless rate to balance the economy, still below pre-pandemic levels.

The RBA held the cash rate at an 11-year high of 4.10% this month, raising rates by 400 basis points since May last year.

The decision follows Australia’s slowest economic growth in 1-1/2 years and signs of further weakening.