Markets tip 50% chance of 50bps cut after economy shrinks 0.2%

A 50-basis-point rate cut would be a very dovish move. (Image: Unsplash)

Thu, 19 Sep 2024

New Zealand’s economy fared better than expected in the June quarter, but market pricing still points to a 50% chance the central bank could cut interest rates by 50 basis points in October.The economy shrank by 0.2% quarter-on-quarter. Most economists predicted the economy would contract by 0.4%, while the Reserve Bank of NZ had forecast a 0.5% contraction.Stats NZ also revised down the March figure to 0.1% growth from 0.2% growth.The data was “better than feared” but overall “economic momentum remains very soggy&...

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