RBNZ on Track for Rate Cut as Unemployment Hits 5.1%

Feb 05, 2025

New Zealand's unemployment rate climbed to 5.1% in the December quarter, up from 4.8% in September, marking a four-year high, according to Stats NZ. The total employment rate also declined to 67.4% from 67.7% in the previous quarter and 69% a year ago.

At the time of writing, analysts suggest that the weakening labor market could prompt the Reserve Bank of New Zealand (RBNZ) to cut the Official Cash Rate (OCR) by 50 basis points to 3.75% this month. Craigs Investment Partners notes that the current jobless rate is above the 25-year average of 4.8%, reinforcing expectations of monetary easing.

 

 

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