Reserve Bank keeps an eye on unemployment

The Reserve Bank will keep a close eye on whether unemployment rises before making a decision on the interest rate, a report says.

A further deterioration in the economic climate could trigger further cuts by the Bank, which has room for at least two more interest rate reductions over the next six months, news.com.au notes.

People with credit card debt could be awaiting the Reserve Bank's decision, as a cut to the base rate could lead to a cheaper rate of interest for repayments.

However, should the Bank decide to increase the base rate, Aussies may want to move their balance to credit cards with a 0% balance to avoid paying out more than they need to.

"Economists say the fate of the labour market will be key to any central bank move, although the size of any more reductions are now expected to be relatively modest," the news resource states.

Aussies may not want to take a chance on awaiting the Reserve Bank's decision and instead transfer their current balance to a 0% balance credit card.

Chief executive of InfoChoice Shaun Cornelius previously told BusinessDay that balance transfer could be a good way with getting on top of debt.

Written by Joe Letts