Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
A 75bp hike will likely be on the table at the Reserve Bank of New Zealand's Nov 23 meeting as the jobs market tightened and wages outpaced inflation in the third quarter, according to StatsNZ data released on Wednesday.
The unemployment rate remained steady at 3.3% despite the loss of 1,000 jobs as the participation rate rose to 71.7% from 70.9% in the June quarter. The underutilisation rate fell to 9% from 9.2%.
The RBNZ will be concerned how the tight jobs market is driving wage rises as it tries to wrestle inflation back within its 1% to 3% inflation target. Average ordinary time hourly earnings - as measured by the quarterly employment survey - increased 7.4% y/y, with private sector earnings up 8.6% y/y. Average weekly earnings (including overtime) gained 7.9%.y/y, while the Labour Cost Index increased 3.7% y/y. The CPI rose at a 7.2% y/y pace in the September quarter. (See MNI BRIEF: CPI Shock May Push 75 Bps Hike On To RBNZ Radar)
The NZ dollar trimmed Tuesday's gains after the stronger than expected U.S. JOLTS report and manufacturing PMI data. Traders have priced in 70bp for the Nov 23 meeting. (See NZD : Kiwi Trims Gains Tuesday, Strong Labour Market Report Supports RBNZ's Hawkish Stance)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.