New Zealand jobless rate climbs in Q3, market sees end to rate hikes

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New Zealand jobless rate climbs in Q3, market sees end to rate hikes

SYDNEY - New Zealand's jobless rate rose to the highest in more than two years in the September quarter as employment slipped and wages grew by less than forecast, a soft report that cemented expectations of an end to interest rate hikes.

Employment fell 0.2% in the quarter, missing analyst forecasts of a 0.4% rise and the first drop since the depths of the pandemic in mid-2020."The RBNZ should take comfort in today's employment data coming in softer than their expectations and, as such, is further evidence that no more rate hikes are needed."

Markets now imply only a 10% chance of another hike at the RBNZ's next policy meeting in late November, while some easing might come from around August next year. Annual growth in overall labour costs held at 4.3% - but only because of high awards in the public sector. Growth in the private sector slowed to 4.1%.

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