Goldman Sachs says NZ economy too strong to justify further rate cuts

The Reserve Bank of New Zealand meet this week, no change in rates is expected but another cut is seen in November.

Yesterday I posted a couple of bank views, along these lines:

• RBNZ meet this week - seen on hold (that's BNZ)
• Another NZ bank view on the RBNZ meeting this week - on hold (Westpac)

Tim Toohey, chief economist at Goldman Sachs Australia, says yep, no rate cut this week, but none right through 2017. He previously saw 2 further cuts ahead.

Toohey says the New Zealand economy is "too strong to justify further rate cuts".

via Bloomberg

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The strong NZ economic data indeed continues, the concern for the RBNZ is too-low inflation. That's what is prompting the thoughts they'll cut again (market is pricing in around 55% probability for a November cut)