Capital Economics on the NZ data
“It was dramatically worse than anyone had expected,”
and what it means for the Reserve Bank of New Zealand:
“Given the dire state of the economy, we now think risks
are tilted towards a
larger 75bp cut in February.” he added.
“We’re more
convinced than ever that the Bank will cut rates
below neutral,
eventually to 2.25%.”
The remarks from CE come via Reuters reporting on the dreadful data from NZ earlier. ICYMI:
New Zealand Q3 GDP -1.0% q/q (vs. -0.4% expected)New Zealand dollar falls even further after GDP plunges
NZD/USD update, hitting its lowest since October 2022:
This article was written by Eamonn Sheridan at www.forexlive.com.
