Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news wholesale markets are now pricing in a peak in the Official Cash Rate of under 4% in the wake of surprisingly weak employment figures yesterday.
Unemployment rose to 6.8% from 6% and employment fell 6,000, much worse than expectations.
Economists say markets may have overshot with expectations that the OCR may only rise another 100 basis points, but they are suggesting the Reserve Bank may pause its rate hiking when it next decides on September 16.
Economists are still picking a peak in the OCR around 5.5%, which would lift floating mortgage rates to around 8.5%.
Wholesale interest rates fell around 10 basis points after the jobs figures, which may allow some banks to cut their longer term fixed mortgage rates.
The New Zealand dollar fell to 72.8 USc from 73.5 USc.
The Dow fell on weak employment and retail sales figures.
Meanwhile, the government has announced it will put NZ$40 million in as an underwrite for the New Zealand Venture Investment Fund.
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