When we look at the entirety of today’s labour market information, we’re left with the impression that while activity is clearly accelerating, it is not yet translating into inflation (partly because of rising population growth in tandem). Of course, this is principally a timing issue, meaning it’s only a matter of time before we see wage inflation pick up the pace. And when it does it will probably catch many by surprise. This is why the RBNZ needs to start taking its pedal off the metal, as it has been talking more and more about over recent months
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BNZ