New Zealand unemployment rose to 5.7% in Q3 from 5.6% in Q2, versus economists’
expectation of 5.5%. Part-time employment increased by 15,000 while full-time
employment fell by 17,000; labor underutilization held at 13.8% and the
employment rate slipped to 66.4% from 66.7%. Released Wednesday ahead of
Saturday’s closely contested election, the data runs counter to market
expectations and supports the RBNZ’s recent caution on further hikes. The RBNZ
MPC voted 4-3 to hold the OCR at 2.75% days earlier, though Governor Anna Breman
signaled the possibility of additional rate increases; money markets had
Largely priced in further tightening.
