According to the 12 economists polled by Reuters, New Zealand’s (NZ) economic growth likely slowed in the second quarter of 2019, highlighting the need for further stimulus despite the sharp 50 bps rate cut seen in August.
“NZ GDP is expected to have slowed 0.4% quarter-on-quarter in the three months to June.
The median forecast from 12 economists polled by Reuters put annual growth at 2.0% in the June quarter, its lowest since 2013, and well below 2.5% posted in the March quarter.
Although the bank is seen likely to keep rates on hold at the next meeting on Sept. 25, several economists expect it will cut rates in November.
A slowing global economy, the escalating Sino-U.S. trade war and warnings of recession have spurred major central banks across the world to ease monetary policy.”
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