Ahead of GDP data next week, economists reckon the economy went backwards, but there’s no technical recession on the horizon.
Borrowers and retailers rejoice after the cut, with the official cash rate expected to fall further in 2025.
Governor Adrian Orr proud of gains the bank has made in the past year.
But most of NZIER’s shadow board pick the OCR will sit between 3.5% and 4.5% a year from now.
Westpac chief economist Kelly Eckhold acknowledges compelling reasons for meatier October and November rate cuts.
Economists expect another 25bp OCR cut next week, just as business confidence markedly improves in the September quarter.
NZ exports as a proportion of GDP have got worse this century, and if the Govt was to achieve its 10-year goal exports would have to grow at a compound rate of 7% a year.
Senior economists speak with NBR about the state of the global economy and outlook for New Zealand.
Economists suggest the chances of a bigger October rate cut have ‘increased’, amid a subdued economy and inflation retreat.
Stats NZ GDP data show the economy contracted 0.2% in the June quarter, while the March quarter was revised slightly.