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

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

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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:


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

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