5 Aug 2015
New Zealand Growth in labour force dampens wage inflation - ANZ
FXStreet (Bali) - Mark Smith, Senior Economist at ANZ, notes that wage inflation remained low in New Zealand ensuring the risks around OCR settings are skewed downwards, expecting a further 25bp cut in September, with the risk of a further 25bp cut next March.
Key Quotes
As signalled by leading indicators and the moderation evident in the activity side of the economy, the quarterly pace of HLFS employment growth slowed further in Q2.
"Lower growth in hours worked measures point to a second successive low quarterly GDP outturn."
"Stronger growth in the labour supply helped to push the unemployment rate up to 5.9%, in line with market expectations."
"Wage inflation remained low, ensuring the risks around OCR settings are skewed downwards. We expect a further 25bp cut in September, with the risk of a further 25bp cut next March."
Key Quotes
As signalled by leading indicators and the moderation evident in the activity side of the economy, the quarterly pace of HLFS employment growth slowed further in Q2.
"Lower growth in hours worked measures point to a second successive low quarterly GDP outturn."
"Stronger growth in the labour supply helped to push the unemployment rate up to 5.9%, in line with market expectations."
"Wage inflation remained low, ensuring the risks around OCR settings are skewed downwards. We expect a further 25bp cut in September, with the risk of a further 25bp cut next March."