New Zealand's Economy Shrinks, Increasing Rate Cut Expectations

Reported about 2 hours ago

New Zealand's economy experienced a larger-than-expected contraction of 0.9% in the second quarter, driven by declines in construction and various global uncertainties, leading to increased bets on steeper rate cuts from the Reserve Bank of New Zealand in October. This marks a continuation of economic struggles, with three of the last five quarters showing contraction. Following the GDP data, market forecasts now anticipate a total cut of up to 58 basis points in the official cash rate, with expectations for more cuts in the coming months in response to households' constraints on spending.

Source: YAHOO

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