KiwiBank “sticking to our call for cuts to begin in November” – “avoid economic scarring”

The data earlier from New Zealand:

• New Zealand Q2 business confidence collapses further, to -44% (prior -25%)

KiwiBank note, these the main points:

• Business confidence deteriorated in the June quarter. High interest rates are weighing on demand, with more businesses seeing a decline in trading activity. Weak-to-miserable growth remains the outlook.
• The most important read in the report involves pricing. And it was all-round good news. Cost expectations have eased, and pricing intentions have softened.
• The most striking read was the deterioration in labour demand. The same proportion of firms as during the GFC are now cutting headcount. And more look to do the same in the coming months.
• The QSBO adds further support for our call for RBNZ rate cuts sooner rather than later. We’re sticking to our call for cuts to begin in November.

The pic from the KiwiBank report isn’t a pleasant one. Hard times in NZ.

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