NZ jobs: Labor market has strong momentum and is tightening quite quickly - ANZ

The Research Team at ANZ published its review on the New Zealand’s labor market report released earlier on the day, noting that the demand for labor is clearly strong in Q3.

Key Quotes:

“Putting aside the surprise in some quarterly movements (always on the cards), today’s figures confirmed what we had expected: the labour market has strong momentum and is tightening quite quickly.”

“At this stage, nominal wage growth remains low (real growth is far stronger) but we suspect that is set to change shortly.”

“The case for the RBNZ cutting the OCR further is weakening with each passing day. Its forward guidance towards a November cut, risk of the NZD spiking if it doesn’t, low headline inflation and reality that a cut likely won’t be fully passed on, all mean that it will likely go. But the economy – though taking time to filter into inflation – says it shouldn’t.”