New Zealand “dramatically worse than anyone had expected” – RBNZ could cut by 75bp in Feb

Capital Economics on the NZ data

• “It was dramatically worse than anyone had expected,”

and what it means for the Reserve Bank of New Zealand:

• “Given the dire state of the economy, we now think risks
  are tilted towards a
  larger 75bp cut in February.” he added.
  “We’re more
  convinced than ever that the Bank will cut rates
  below neutral,
  eventually to 2.25%.”

The remarks from CE come via Reuters reporting on the dreadful data from NZ earlier. ICYMI:

• New Zealand Q3 GDP -1.0% q/q (vs. -0.4% expected)
• New Zealand dollar falls even further after GDP plunges

NZD/USD update, hitting its lowest since October 2022:

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