New Zealand Treasury cuts its forecast for inflation, sees 3.3% from 4.1% prior

New Zealand Treasury half yearly update:

• New Zealand to see slower growth than forecast in half yearly update
• Sees annual fy24 GDP at +0.1% down from +1.5% forecast in half yearly
  update
• Sees annual fy25 GDP at +2.1% up from +1.5% forecast in half yearly
  update
• Sees annual fy24 CPI at +3.3% down from +4.1% forecast in half yearly
  update
• Scenario is not a fiscal forecast as does not include all
  information from government entities

New Zealand Finance Minister Nicola Willis:

• OBEGAL surplus in 2027-2028 is possible but it’s not a given
• Will not be chasing OBEGAL surplus in any given year “at any cost”
• OBEGAL surplus in 2026-27 almost certainly not achievable

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Operating balance before gains and losses (OBEGAL)

This article was written by Eamonn Sheridan at www.forexlive.com.