Rate cuts might come sooner given weak economy

Rate cuts might come sooner given weak economy
The weak data could mean a more dovish RBNZ. (Image: Unsplash)
Rebecca Howard
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...

More Economy

Dire economy opens door for 50bps cut in October
Economy

Dire economy opens door for 50bps cut in October

The New Zealand economy contracted 0.9% in the June quarter. 

Economy contracts 0.9% in June quarter
Economy

Economy contracts 0.9% in June quarter

GDP has now fallen in 3 of the last 5 quarters.

Life insurance market shrinks
Finance Risky Business

Life insurance market shrinks

Foreign firms dominate as affordability, tax and access barriers stymie growth.

Seeking a faster, sharper ComCom
Economy

Seeking a faster, sharper ComCom

A ‘gold standard’ approach and siloed structure slow the ComCom down.