Kiwibank chief economist Jarrod Kerr says the latest employment figures put more pressure on the Reserve Bank to cut interest rates.
While the number of unemployed fell marginally, Kerr thinks employment growth has lost momentum.
“The concerning news is the drop in the participation rate.”
Kerr says the lack of wage inflation and low business confidence are worrying signs for the economy. He expects the RBNZ to cut the official cash rate from 1.75 percent to 1.50 percent next week.
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