But the news isn't all bad, with economists suggesting the nation's wobbly economy could drive the official cash rate as low as 3.5 per cent by the end of 2012, The Daily Telegraph reported.Westpac chief economist Bill Evans, one of the few economists who correctly predicted a rate cut in November, said lead indicators pointed to a very weak employment growth next year.
"We would expect the unemployment rate to edge up to 5.75 over the next six months," Mr Evans warned.
"But on the flipside, the Reserve Bank would have to cut the cash rate by at least half a per cent to counter (the job losses)."
The comments come as top research firm CoreData suggested the number of unemployed people in Australia will jump by nearly 106,000 next year, assuming the labour force grows at its current rate and the unemployment rate rose to 5.75 per cent, as predicted.
CoreData boss Andrew Inwood said the problem would be felt nationwide. Read More
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