New Zealand "dramatically worse than anybody had anticipated" – RBNZ might reduce by 75bp in Feb

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Capital Economics on the NZ information

  • “It was dramatically worse than anybody had anticipated,”

and what it means for the Reserve Financial institution of New Zealand:

  • “Given the dire state of the economic system, we now suppose dangers
    are tilted in direction of a
    bigger 75bp reduce in February.” he added.
    “We’re extra
    satisfied than ever that the Financial institution will reduce charges
    under impartial,
    finally to 2.25%.”

The remarks from CE come through Reuters reporting on the dreadful information from NZ earlier. ICYMI:

  • New Zealand Q3 GDP -1.Zero% q/q (vs. -Zero.four% anticipated)
  • New Zealand greenback falls even additional after GDP plunges

NZD/USD replace, hitting its lowest since October 2022:

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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