Jobless rate would have to surprise to trigger August OCR cut

A 4.7% unemployment rate would be the highest since late 2020. (Image: Getty)

Fri, 02 Aug 2024

New Zealand’s unemployment rate likely hit its highest level in more than three years in the June quarter but economists say it is unlikely to trigger an August cut in the official cash rate.Economists expect the unemployment rate to be revealed as 4.7% in the June quarter versus 4.3% in the March quarter when data is released on Aug 7. It would mark the highest jobless rate since late 2020. The Reserve Bank (RBNZ) forecast 4.6% in the May monetary policy review. A more dovish tone from the central bank in July coupled wit...

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