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Prediction Market Reacts To Treasury Unemployment Forecast

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Fuseworks Media
Fuseworks Media
Prediction Market Reacts To Treasury Unemployment Forecast

16 January 2009 - New Zealand's unemployment rate is set to reach 6% by September, according to the latest predictions on iPredict. Stock on New Zealand's online prediction market is already reacting to the latest Treasury projections out this week, that unemployment will reach 7.5% in 2011.

"Treasury's forecast this week had a strong impact on iPredict, with the market revising unemployment expectations upwards by 0.5%," said iPredict CEO Matt Burgess. Similar to sharemarkets, new information moves market prices immediately as traders respond to news.

Unemployment rates are being forecast on iPredict by a series of stocks which pay out depending on official unemployment rates in the coming quarters of 2009.

"Its like an economic barometer of events as they happen, and right now much of the new information coming out is pushing up unemployment expectations and adding to the pessimism." iPredict is authorised by the Securities Commission as a futures dealer and is owned by Victoria University and the Institute for the Study of Competition and Regulation.

The primary purpose of iPredict is research and education. Anybody can browse iPredict and see the predictions for free by going to www.iPredict.co.nz. Traders must be 18 years and older to set up an account. Accounts are free to set up and people can start trading with as little as $5.

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