Economic weather report: OCR on hold as jobless rate jumps to 7.3%

Bernard Hickey delivers an economic weather report in association with the BNZ on surprisingly weak labour force figures that showed the unemployment rate rose to 7.3% from 6.5%. This was much higher than the 6.8% economists had expected and higher than 6.6% the Reserve Bank had expected.

Economists pointed out however that a large reason for the rise was the rise in the workforce and a slight rise in the participation rate. Employment also fell, but only by 0.1% and in line with expectations.

Economists also said the results reinforced expectations that the Reserve Bank would be able to hold the Official Cash Rate at a record low 2.5% until the middle of 2010. Wholesale interest rates fell slightly after the surprise result and the New Zealand dollar fell. But fixed mortgage rates and term deposit rates are unlikely to fall in tandem, given banks face higher costs to gather term deposits and funds on international money markets.

Category:

News & Politics

Tags:

• Bernard Hickey
• economic weather report
• unemployment

[fluentread]

Immiggration last year 5 X normal.Australia brings in a million more people last year ...idiots theres no infrastrcture for it (education etc) What carnage NZ down the track ,,and it won't savethe bankster...Poor Key ...he will be thrown away at the next election

[navtel]

man, you guys sure have a way to spin numbers... i gotta hand it to you.