NZD traders - take note of the poor NZIER data - prompts another bank to slash its RBNZ cash rate forecast

The quarterly survey by the NZIER indicated, yet again, very weak business confidence and activity.

Data is here:

• NZ data - quarterly business survey. Business confidence -35% (prior -34%)

The first cab off the rank in the wake of the report I saw was ASB:

• NZ data (NZIER QSBO) just out is prompting forecasts for a near term RBNZ rate cut

Kiwibank had been expecting another cut from the Reserve Bank of New Zealand , down to 0.75% but have revised that forecast to further cuts, to 0.5%

• good chance of another 50bp cut in November

More:

• Business Confidence deteriorates along with profitability. Poor pricing intentions has cut inflation expectations. Businesses are worried.
• RBNZ action has failed to spark the fire needed under business intentions. More work is required.
• The protracted, and worsening, malaise amongst business, is likely to induce another RBNZ response. We now expect another 50bps cut(s) to just 0.5%. And we wouldn't rule out a 50bp in November. But it is the Government that must step up.

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(The RBNZ meet again November 13)