The data from NZ earlier is here:
New Zealand Q2 GDP -0.2% q/q (expected -0.4%)
Via ANZ New Zealand, their take (in summary):
The New Zealand economy contracted 0.2% q/q in Q2 on a seasonally adjusted basis … above the RBNZ’s forecast of -0.5% q/q.Despite an upward surprise for the RBNZ, overall economic momentum remains very weak, consistent with ongoing disinflation and gradual OCR cuts.Overall, we don’t see these data as a game changer for the monetary policy outlook. We continue to expect the RBNZ to deliver 25bp cuts at each meeting, allowing time to assess the economy’s responsiveness to easing. Financial markets had been attributing more than 50% odds of a 50bp cut by the RBNZ as soon as October. We’ve always felt the market was getting ahead of itself, and today’s better-than-feared outturn vs the RBNZ’s forecastshould pour some cold water on the idea of outsized cuts (at least in the near term).
ANZ summary:
This article was written by Eamonn Sheridan at www.forexlive.com.
