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NZ Weekly Economic Commentary: Plenty to ponder
Last week’s labour market surveys will have left the Reserve Bank with some mixed feelings. Higher interest rates are cooling the New Zealand economy, and unemployment has continued to rise. But the process isn’t happening as fast as hoped, and wage growth remains much higher than what would be consistent with the 2% inflation target. These results, along with a string of data and events this week, will give markets a lot to ponder ahead of the next RBNZ policy statement. The Household Labour Force Survey (HLFS) showed that the unemployment rate rose from 3.9% to 4.0% in the December quarter. From one ... (full story)