ASB forecasting first OCR cut in August next year

(Image: ASB)

Wed, 20 Dec 2023

ASB believes the first cut to the official cash rate will be in August next year. That brings the bank’s revised forecast forward by six months, pointing to last week’s weaker-than-expected gross domestic product (GDP) figure.GDP fell 0.3% in the third quarter against the Reserve Bank of New Zealand’s (RBNZ) own forecast of an increase of 0.3% and ASB’s 0.2% increase.It also revised the second quarter’s 0.9% GDP growth down to 0.5%.ASB’s chief economist Nick Tuffley described the GDP release as &ldq...

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