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New Zealand’s unemployment rate rose to its highest level since early 2021 in the second quarter, signaling a further slowing in the farm-rich economy and shining a spotlight on the growing potential for the Reserve Bank of New Zealand to start cutting interest rates before the end of the year, the Wall Street Journal. The jobless rate rose to 4.6% in the second quarter, slightly below the expected rate of 4.7%, but above the prior quarter’s rate of 4.4%, and 3.6% from a year earlier, Stats NZ said on Wednesday.
Inflation in New Zealand softened by more than expected in the three months through June, raising the prospect that the official cash rate could be cut as soon as next month, the Wall Street Journal reported. Consumer prices rose by 0.4% in the second quarter of this year, and by 3.3% from the same period a year earlier, Stats NZ said Wednesday. The annual rise was lower than the 3.6% increase expected by the Reserve Bank of New Zealand, which has turned more dovish recently as the South Pacific economy struggles to emerge from a postpandemic slump.
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