New Zealand Dollar: RBNZ seen hiking again – TD Securities
TD Securities reviews New Zealand’s Q2 labour report, noting unemployment rose to 5.6%, an 11‑year high, partly on higher participation, while employment still grew 0.5% quarter‑on‑quarter. Private-sector wages slightly beat consensus and the RBNZ’s May forecast.
TD Securities anticipates the Reserve Bank of New Zealand (RBNZ) will raise interest rates again by 25 basis points in September, according to their latest analysis of the country's Q2 labor report. The unemployment rate climbed to 5.6%, its highest level in 11 years, driven by a rise in participation despite employment growing by 0.5% quarter-on-quarter, outpacing consensus expectations.
Private-sector wages experienced a modest increase of 0.7% quarter-on-quarter, surpassing both the consensus and the RBNZ's May forecast. Despite the mixed signals from the labor market, TD Securities maintains confidence in the RBNZ's ability to continue implementing rate hikes as economic activity rebounds in the coming quarters.
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