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ANZ: Wage Pressures To Keep RBNZ On Hiking Path

NEW ZEALAND

ANZ note that “while unemployment did increase, the continued surge in wage inflation is a serious concern for the RBNZ. The labour market is likely to remain a driver of persistently too-high domestic inflation over the next year, and with wages growing even faster than we or the RBNZ expected, the risk of a wage price spiral is certainly not abating. That should keep the RBNZ on track to hike the OCR to 4% by the end of the year as per our forecasts.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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