WELLINGTON, Feb 8 (Reuters) - New Zealand's central bank governor said the worse-than-expected unemployment data last week has not altered the bank's view on when it might start raising interest rates.
'We haven't changed our view from what we said last week which was we think we will watch the data carefully, maybe around the middle of the year, but that's a maybe,' Alan Bollard told a Television NZ programme on Sunday.
The Reserve Bank of New Zealand (RBNZ) repeated on Jan. 28 that the bank expects to begin removing policy stimulus around the middle of this year.
Data last week showed unemployment surging to a 10-year high of 7.3 percent as more people sought work but in a shrinking job market. The central bank saw it peaking at 6.6 percent by March this year.
Asked if unemployment in New Zealand had peaked, Bollard said: 'Well, we hope so, we think so.'
Bollard said the unemployment data was 'not all bad news', which was boosted by the rise in the number of people wanting to return to the workforce while a small number of jobs were lost.
He described the domestic and global economies as going through a fragile period, but growth was expected to improve through the year.
Financial markets have shifted their pricing for the first rate hike to June from April after the jobless data.
((mantik.kusjanto@thomsonreuters.com; +64 4 471 4232; Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net)) Keywords: NEWZEALAND ECONOMY/BOLLARD (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'We haven't changed our view from what we said last week which was we think we will watch the data carefully, maybe around the middle of the year, but that's a maybe,' Alan Bollard told a Television NZ programme on Sunday.
The Reserve Bank of New Zealand (RBNZ) repeated on Jan. 28 that the bank expects to begin removing policy stimulus around the middle of this year.
Data last week showed unemployment surging to a 10-year high of 7.3 percent as more people sought work but in a shrinking job market. The central bank saw it peaking at 6.6 percent by March this year.
Asked if unemployment in New Zealand had peaked, Bollard said: 'Well, we hope so, we think so.'
Bollard said the unemployment data was 'not all bad news', which was boosted by the rise in the number of people wanting to return to the workforce while a small number of jobs were lost.
He described the domestic and global economies as going through a fragile period, but growth was expected to improve through the year.
Financial markets have shifted their pricing for the first rate hike to June from April after the jobless data.
((mantik.kusjanto@thomsonreuters.com; +64 4 471 4232; Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net)) Keywords: NEWZEALAND ECONOMY/BOLLARD (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.