Australia's Central Bank predicts the nation's jobless rate could plunge to 3.75 per cent in two years' time if households splurge their money saved during the pandemic.
Australian incomes have been boosted by emergency government support over the past year.
The household saving ratio jumped to 22 per cent in the June quarter, before sliding to 12 per cent in the December quarter.
The latest employment forecast would push underlying inflation to 2.25 per cent by the middle of 2023.
