Download by
Scanning QR Code
  • Download app

    Download app

  • Online Inquiry

    Log in to access Online Inquiry
You've successfully got advanced quotes worth 5000 HKD
Download APP >>

New Zealand's unemployment rate falls to 4%, boosting expectations of interest rate hikes

新浪財經 ·  {{timeTz}}

New Zealand's unemployment rate fell more than expected in the second quarter as the economic recovery boosted jobs and began to push up wages. The New Zealand dollar rose as traders bet that there could be as little as two weeks left before raising interest rates.

New Zealand's statistics department said Wednesday in Wellington that the unemployment rate fell to 4% in the second quarter and 4.6% in the first quarter. Economists expect 4.4%. Employment increased by 1% over the previous quarter. Private sector regular-time wages rose the most in 13 years.

The labour market report is the latest sign that the economy may be overheating, and the Bank of New Zealand is likely to raise interest rates to contain price pressures. Year-on-year inflation surged to 3.3 per cent in the second quarter, exceeding the central bank's target range of 1-3 per cent.

Investors have stepped up their bets on raising interest rates, and the market is now fully expected to raise interest rates by 25 basis points in the next policy review on Aug. 18, with at least one more increase expected before the end of the year. Economists at ASB Bank and Bank of New Zealand say they now expect to raise interest rates three times this year, bringing the cash rate to 1 per cent.

This page is machine-translated. Futubull tries to improve but do not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation.

Risk disclosure: The above content only represents the opinion of the authors or guests, and does not represent any positions of Futu or constitute any investment advice on the part of Futu. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and consult professional investment advisers where necessary. Futu makes every effort to verify the authenticity, accuracy, and originality of the above content, but does not make any guarantees or promises.

Back to the Top