Rate rise almost certain after jobless rate hits 16-year low
Thursday 13 May 2004
Economists say another interest rate rise in June, and probably again in July, is almost certain after figures out today showed the unemployment rate fell to a 16-year low of 4.3 per cent.
By The LandlordMortgage and business lending rates were likely to soon head north of 8 per cent, they said.
The jobless rate fell from 4.6 per cent at the end of last year and is now the lowest since December 1987.
Statistics New Zealand's March quarter Household Labour Force Survey showed job growth was much stronger at 0.9 per cent than forecast.
Economists say the rate of job growth, or even economic growth, is unsustainable without creating inflationary pressure.
Read More - Opens in a new window
Commenting is closed
Housing confidence has been dealt a hefty blow by the Covid-19 crisis with house price expectations plummeting to new lows.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.