While the Q2 labour force survey out of New Zealand showed that labour demand remains dismal, it's worth noting that firms have been squeezing more out of their existing employees. The resultant lift in productivity is helping to significantly reduce unit labour cost growth and, in turn, domestically-drive inflation. Against this backdrop, we are increasingly confident in our view that the RBNZ will cut rates further than most anticipate.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services