ASB had previously been forecasting a Reserve Bank of New Zealand in August of 2019 and then on hold.
The bank still expect an August cut but have slotted in an expected November cut now. ASB citing weak business confidence survey as further evidence rates cuts are needed
- There is evidence to suggest that falling profit margins are now impacting employment demand, and the risk is that a weaker labour market may result in the economic slowdown becoming more entrenched
- say a cut in August is a done deal
ASB do caution that a November cut is contingent on data released up to then.
