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.
