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VIEW: ANZ: Labour Market Key Source Of Domestic Inflation

RBNZ

In lieu of today’s data ANZ note that “the labour market has only continued to tighten in Q3 (from already remarkable levels in Q2), and is now a key source of domestic inflation. Today’s data reinforce our expectation for a 75bp OCR hike (to 4.25%) at the RBNZ’s November meeting. With employment and hourly earnings growth coming in hotter than the RBNZ expected, the data also tilt the odds further towards our forecast of a 75bp hike in February (to 5.0%).”

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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