New Zealand's unemployment rate fell....>

NEW ZEALAND: New Zealand's unemployment rate fell further in the first quarter

and underutilization rate also dropped but wage growth remained subdued despite

reduction in spare capacity in the economy. The data supports the Reserve Bank

of New Zealand's on-hold for longer monetary policy stance.

- Wage inflation is expected to get some boost from rise in minimum wages from

April 1. The minimum wage will increase by 4.8% from NZ$15.75 per hour to

NZ$16.50 per hour and is expected to affect around 3% percent of the labour

force, the RBNZ said in February.

- However, wage inflation could face an opposing influence from slowing in

headline inflation in Q1. Consumer price index inflation rose just 1.1% y/y in

Q1, slowing from +1.6% in Q4. In recent years, past inflation outcomes have

played a bigger role in influencing wage outcomes. (MNI - For Full Story See

Main Wire At 00:33 BST 05/02)