Watch on our video page here. Watch video on YouTube here. Bernard Hickey delivers an economic weather report in association with the BNZ on surprisingly weak labour force figures that showed the unemployment rate rose to 7.3% from 6.5%. This was much higher than the 6.8% economists had expected and higher than 6.6% the Reserve Bank had expected. Economists pointed out however that a large reason for the rise was the rise in the workforce and a slight rise in the participation rate. Employment also fell, but only by 0.1% and in line with expectations. Economists also said the results reinforced expectations that the Reserve Bank would be able to hold the Official Cash Rate at a record low 2.5% until the middle of 2010. Wholesale interest rates fell slightly after the surprise result and the New Zealand dollar fell. But fixed mortgage rates and term deposit rates are unlikely to fall in tandem, given banks face higher costs to gather term deposits and funds on international money markets.
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