- Net inward migration reached a fresh year-to-date peak of 53797 in January 2015, up from 50922 in the year to December 2014. The total appears on a trajectory towards 60000 over the next few months.
- The high net inflow continues to reflect New Zealand’s strong relative economic and labour market performance, especially when compared with Australia.
- Strong population growth will continue to support growth in retail spending and contribute to the current supply/demand imbalance in the housing market.
- At the same time, it will continue to contribute to growth in the labour force which is helping keep skills shortages and wage pressures in check at a time of strong employment growth.
- That means there are both pluses and minuses for the Reserve Bank which supports the case for monetary policy remaining on hold for the foreseeable future.