The government needs a rise in unemployment. At 3.5% unemployment there were inflationary labour shortages. At the current 4.2% unemployment the RBA describes the labour market as remaining tight. They're not going to lower rates with unemployment at this level. If it ticks up past 4.5% whatever remnant of inflation that remains, and there probably isn't a lot, will disappear. That will give the RBA room to cut. The government would very much like that to happen by February next year.
