New Zealand's fourth-quarter unemployment rate rose to 5.4%, reaching a 10-year high.

New Zealand's unemployment rate in the fourth quarter rose to a 10-year high as the increase in job seekers offset employment growth. This mixed report suggests that interest rates will need to remain low for some time. In response to this news, the New Zealand dollar fell slightly to 0.6045 USD, while interest rate futures rebounded as the market reduced the possibility of a rate hike, with the official overnight cash rate currently at 2.25%. Data from Statistics New Zealand shows that the fourth-quarter unemployment rate edged up to 5.4%, the highest since the third quarter of 2015 and higher than market expectations of 5.3%. This data is also slightly higher than the Reserve Bank of New Zealand's forecast, disappointing as recent data had shown some improvement in the weak economy. Private sector annual wage growth remains at a low of 2.0%, far below the 3.1% consumer price inflation rate. However, it's not all bad news: employment numbers in the fourth quarter increased by 0.5% compared to the previous quarter, exceeding the 0.3% forecast and marking the first growth in 18 months. Labor force participation rate also rose to 70.5%. Investors expect that the Reserve Bank of New Zealand will not adjust interest rates at their next policy meeting on February 18, with the first rate hike likely to occur in July.