A better-than-expected 2Q GDP result won’t sway RBNZ

The business sector’s mood is lighter since the RBNZ began its easing cycle but growth “isn’t expected to rapidly turn around”, ASB Banks says. (Image: Getty)

Rebecca Howard

Fri, 13 Sep 2024

Although the economy contracted less in the June quarter than the Reserve Bank of New Zealand forecast, the data is unlikely to change its monetary policy outlook.In August, the Reserve Bank of NZ (RBNZ) kicked off an easing cycle by cutting the official cash rate (OCR) by 25 basis points to 5.25%, signalling more.At the time, it forecasted that the economy contracted by 0.5% in the June quarter and said that the weakening domestic economic activity was becoming more pronounced and broad-based. Rolling maulSenior economist Michael Gor...

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