ANZ expects no further rate cuts from the Reserve Bank of New Zealand

Author: Eamonn Sheridan | Category: Central Banks

In response to the latest economic data from NZ, today's spectacularly good jobs report:

ANZ are blunt:
  • Unambiguously better - no more OCR cuts required
  • We no longer expect the RBNZ to cut the OCR again this cycle
Citing (in summary):
  • unemployment rate fell to 4.9% ... conditions are unambiguously better than previously feared
  • the labour market has been bolstered by a solid post-lockdown recovery
  • hours worked and incomes are being supported by economic momentum
  • Slack in the labour market will weigh on wage inflation, but a slow grind higher is expected overall
  • The RBNZ's employment and inflation mandates are now looking more achievable, with the economy better placed to weather headwinds than previously feared. The RBNZ will want more assurance, with policy expansionary for a long while yet, but today's data suggest the RBNZ can be patient.
NZD has barely looked back after its post-data jump:
In response to the latest economic data from NZ, today's spectacularly good jobs report:



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