Wednesday, 2nd August, 2017
Last week the US Federal Reserve kept interest rates on hold and, through very subtle wording shifts, signalled a touch more caution about inflation developments. US inflation has actually been easing recently, as has wage growth.
The key event for NZ this week is the release of the labour market figures: employment, unemployment and wages. One of the puzzles in NZ and the US is that inflation pressures have remained quite muted, even as labour markets have tightened up over the last few years.