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:
