Time for RBNZ to Cut Rates?

Posted Wednesday, May 1, 2019 by
Arslan Butt • 1 min read

Weak employment data from New Zealand earlier today caused NZD/USD to fall by 0.5% today. Data released by Statistics New Zealand revealed that the number of jobs dropped by 0.2% in Q1 2019, while expectations were for a 0.5% increase.

Although the unemployment rate fell to 4.2% from 4.3% in the previous quarter, participation rate fell to 70.4%, beating expectations which were for 70.9%. Wages rose by 0.3% QoQ, against 0.5% expected, while the annual growth rate of wages touched 2%, below expectations which were for 2.1%.

The overall business sentiment in New Zealand also appears less than favorable, as the GDP has been softening over the past six months. Is it time for the RBNZ to consider implementing rate cuts?
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