NZ: Conditions primed for an uplift in nominal wage growth - ANZ

New Zealand’s nominal wage growth is subdued and so it should be, given inflation and productivity trends, but conditions are primed for an uplift, according to analysts at ANZ.

Key Quotes

“Secular forces do need to be considered – they mean any pick-up will be modest and unlikely to be shared equally – but it still looks like historical (Phillips Curve) relationships hold. The RBNZ should retain a neutral stance this week, but with some dovish undertones. Inflation expectations are likely to fall, while ECT and retail sales figures should point to a modest pace of spending growth.”