Better business confidence won't trigger rate cut

(Image: Getty)

Wed, 17 Jan 2024

Businesses may be more optimistic, but economists say it won’t be enough to prompt the Reserve Bank of New Zealand to cut rates any sooner. A net 10% of businesses surveyed in the December quarter expect economic conditions to worsen over the next year, according to the NZ Institute of Economic Research’s (NZIER) Quarterly Survey of Business Opinion (QSBO). This was a significant step up from the September quarter, when a net 49% saw conditions worsening. The official cash rate (OCR) is currently at 5.5% after an aggr...

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