(Re-casts, adds economists expectations, market reaction)
WELLINGTON, Aug 2 (Reuters) - New Zealand's unemployment rate sank to 4.8 percent in the second quarter, its lowest since late 2016, but the number of jobs created fell unexpectedly by 0.2 percent, official data showed on Wednesday.
Quarterly wage inflation remained at a tepid 0.4 percent, as expected, Statistics New Zealand said.
The result sent the New Zealand dollar down sharply to a one-week low of $0.7426 from around $0.7466 before the data was published.
Economists polled by Reuters had forecast the jobless rate returning to 4.8 percent, a level last struck in the third quarter of 2016 and then an eight-year low, and quarterly job creation to rise by 0.7 percent.
The surprise drop in job growth combined with sluggish wage inflation suggests the Reserve Bank of New Zealand (RBNZ) will almost certainly keep rates at record lows when it meets for a monetary policy decision next week.
Annual wage inflation was 1.6 percent, in line with expectations, while the participation rate slipped to 70.0 percent from 70.6 percent the previous quarter.
