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New Zealand Jobless Rate Drops to 4%, Fueling Rate-Hike Bets

  • Wage inflation accelerates to the fastest pace in 13 years
  • RBNZ rate increase now fully priced in for August review
Updated on

New Zealand’s unemployment rate fell more than forecast in the second quarter as the economy’s recovery boosted hiring and began to stoke wage inflation. The kiwi dollar rose as traders bet the central bank could increase interest rates in two weeks.

The jobless rate fell to 4% from a revised 4.6% in the first quarter, Statistics New Zealand said Wednesday in Wellington. Economists expected 4.4%. Employment rose 1% from the previous three months. Private sector, ordinary time wages increased the most in 13 years.