Net migration continues to add to the population, increasing the number of people looking for houses and work.

Seasonally adjusted figures for January showed the annualised rate of inflow at 22,000, which increased population growth by 0.5 percentage points, Deutsche Bank economist Darren Gibbs said.

The monthly influx was the highest since May but dipped for the year to January. Still, the trend was strong, with New Zealanders moving away permanently slowing and the year-on-year figures down 21 per cent, Mr Gibbs said. For the year to January, a net 16,000 people went to Australia, less than half of the number in the previous corresponding year.

UBS economist Robin Clements said the movements would continue to support demand for housing but also added to the working age population, risking prolonging high unemployment.

But he expected net inward migration to abate as job opportunities started to entice Kiwis back across the Tasman.

The implication for market rates was towards the Reserve Bank unwinding interest rates, ASB economist Jane Turner said.

(Source - The Dominion Post)