A surprise jump in Australia's job numbers in February, the biggest increase in over a decade, had many market watchers close the door on more rate cuts, but one economist says the possibility of easing stays alive.
Alan Oster, chief economist, National Australia Bank (NAB), argues that while more jobs were created last month, the employment rate didn't change indicating that all is not quite well with the economy and a rate cut could be on the cards.
The Reserve Bank of Australia has stayed firm on keeping the interest rate at a record low of 3 percent after making cuts in October and December last year and with jobs soaring by 71,500 in February, far above forecasts, hopes of a rate cut in the near-term were more or less squashed.
Australia Employment Soars, Market Gives Up on Rate Cut
But Oster points to the unemployment rate which stayed at 5.4 percent, despite the rise in jobs.
"Fundamentally, if employment was as strong as that, the unemployment rate should have gone down and it didn't," Oster told CNBC's "Cash Flow" on Friday. "Really, the one that matters more to me is the unemployment rate, which was unchanged."