More on the New Zealand jobs data – unemployment hitting a 4 year high

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.