The RBA is cutting interest rates and unemployment is at historic lows. This is not supposed to be happening | | Greg Jericho

In December the unemployment rate was 4.0% and inflation was 2.4% , which is in the lower half of the RBA ’s target range of 2% to 3.5% .

To find the last time unemployment and inflation were below 2.5% , we have to go all the way back to December 1970 .

But while all this happening wage growth is slowing, the Reserve Bank is cutting rates.