The unemployment rate has surged to its highest point in nearly four years, following an unexpected rise in job seekers last month. This development elevates the possibility of an interest rate cut before the holiday season.

Fresh statistics from the Australian Bureau of Statistics, released today, reveal that the unemployment rate climbed to 4.5% in September. This marks an increase from the revised 4.3% reported for August, which was initially stated to be 4.2%.

This outcome defies economists’ predictions, as the market had anticipated the rate to edge up to only 4.3%.

Although recent inflation figures have dampened expectations for a pre-Christmas interest rate cut, Reserve Bank of Australia Governor Michele Bullock suggested there’s still potential for reducing the cash rate. She made these remarks during an event in the United States last night.

“We don’t believe monetary policy is restrictive, nor do we find it accommodative,” Bullock remarked.

“We perceive it to be slightly tight,” she added.

“It’s probably a little on the tight side but not much.”

The ABS will publish crucial quarterly inflation data in two weeks, which is set to have a crucial influence on the RBA’s November and December decisions.