The New Zealand jobs data is here:
- New Zealand Q4 unemployment rate 5.1% (vs. 5.1% expected and 4.8% in Q3
- employment in the quarter fell 0.1%, its biggest drop since
2009 - wage growth unchanged q/q
Analyst responses (info via Reuters):
ASB:
- softening labour
market - should prompt continued frontloading of
monetary policy easing - “The RBNZ will be wary of the wider economic, social, and
labour market costs from keeping overly restrictive official
cash rate settings for longer than is necessary,”
Westpac:
- some details were marginally stronger
than the RBNZ had assumed - not likely to
change its thinking -
“The RBNZ has already stated that the base case for its
policy review later this month will be a 50 basis point official
cash rate cut, unless there was conclusive evidence otherwise”
The next Reserve Bank of New Zealand meeting is February 19.
This article was written by Eamonn Sheridan at www.forexlive.com.
