New Zealand "dramatically worse than anyone had expected" - RBNZ could cut by 75bp in Feb ...Middle East

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New Zealand dramatically worse than anyone had expected - RBNZ could cut by 75bp in Feb

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:

    This article was written by Eamonn Sheridan at www.forexlive.com.

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