New Zealand Unemployment Highest in Over 4 Years, More Rate Cuts Ahead

New Zealand's Unemployment Rate ticked higher to 4.2% from 3.9% in the three months through June, the highest in four and a half years. Rising unemployment will have a detrimental effect on disposable incomes, crimping consumer spending and slowing economic growth. Indeed, New Zealand is now formally in recession as GDP shrank in the first and second quarters. The Reserve Bank of New Zealand has aggressively lowered borrowing costs 1.75% since July and is expected to slash rates by another 75-100 basis points at the next meeting on December 3rd.

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