NZ: Unemployment rate came in at 5.1% vs. 5.3% - BBH

Research Team at BBH, notes that the New Zealand reported Q2 employment data overnight and the unemployment rate came in at 5.1% vs. 5.3% expected, while Q1 was revised down to 5.2% from 5.7% previously. 

Key Quotes

“Employment rose 4.5% y/y vs. 2.3% expected, while the participation rate rose to 69.7% vs. 68.8% expected.  It’s worth noting that the statistics agency changed its methodology and began including defense personnel, so historical comparisons will be skewed. 

There are two more RBNZ policy meetings this year, September 22 and November 10.  No cut is expected next month, though a handful of analysts look for another 25 bp cut.  Rather, the majority of analysts look for a November cut.”