GDP plunge may spur speculation about a 75bps cut

Some suggest more aggressive interest rate cuts may be ahead. (Image: Getty)

Thu, 19 Dec 2024

The steepest two-quarter decline in economic output in more than 33 years – outside of covid – has solidified expectations the Reserve Bank of New Zealand will cut by at least 50 basis points in February and could even put 75 bps back on the table. NZ’s gross domestic product fell 1% in the September 2024 quarter. The Reserve Bank of NZ (RBNZ) had forecast a 0.2% contraction.According to figures released by Stats NZ released on Thursday, the massive fall also came after a revised 1.1% decrease in the June 2024 quarter.The...

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