Australia - Will a looming jobs market slowdown prompt the RBA to cut rates in May?

ICYMI, yesterday's inflation report from Australia has prompted forecasters (not all of them) to tip an imminent Reserve Bank of Australia rate cut.

Many now calling a cut at the next RBA meeting on May 7. And more cuts following.

The gnarly question is, though, with the labour market strong (unemployment is at 5%), will this see the RBA argue for not cutting rates? This is the gist of HSBC's non-consensus call for the RBA to remain on hold:

• ICYMI - AUD drop after CPI, forecasts for an imminent RBA rate cut piling in.

So, what of the jobs market?

Yesterday we got the Australian Government's official job vacancy report, for March. This report looks at job vacancy advertisements on Seek, Career One and Australian Job Search. The result: advertised vacancies dropped 1.5% (trend terms) in March

The concern raised is that the fall in job ads will precede a rise in unemployment. As an offset, there are arguments that the government report does a poor job of capturing all job ads and the labour market is actually stronger than indicated.

I said this was a gnarly question, it is. Answers welcome!

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More:

• Australia Q1 CPI, headline 0.0% q/q (expected 0.2%)
• AUD drop on CPI's flat headline results, core measures under expectations also
• Does this algo hold the key for an RBA rate cut?
• Citi, JPM, RBC … responses to the CPI coming in, banks shift expectations for RBA cut to May
• ANZ, TD … RBA rate cut forecasts to May after disappointing CPI data

Also:

• ICYMI - New Zealand and Australia markets closed today