New Zealand's Q2 unemployment rate rises to 4.7%, moderating wage inflation and potentially influencing RBNZ's rate decisions.
New Zealand's labour market is experiencing softening, with unemployment rising to 4.7% and wage inflation moderating in Q2. The Reserve Bank of New Zealand (RBNZ) had forecasted a rise in the unemployment rate to 4.6% and a slowdown in annual wage growth to 3.6%, but recent high-frequency indicators suggest a weaker labour market than anticipated. The release of the labour market data for the June quarter is highly significant, as it could pressure the RBNZ to adopt an even more dovish stance and potentially lead to earlier rate cuts, moving from the current rate hike expectations.
August 02, 2024
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