Rate cuts might come sooner given weak economy

The weak data could mean a more dovish RBNZ. (Image: Unsplash)

Thu, 14 Dec 2023

Weaker-than-expected economic growth has amped up speculation rate cuts might be coming sooner than expected.“Should that weaker growth outlook translate into a swifter reduction in inflationary pressures, official cash rate cuts could come earlier than the early 2025 timeframe we’ve been anticipating up until now,” said ASB economist Nathaniel Keall.The economy contracted 0.3% on quarter in the September quarter, following a revised 0.5% increase in the June quarter.Substantially softerThe data was “substantially softer...

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