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Satish Ranchhod, senior economist at Westpac, notes that New Zealand’s September Quarter Survey of Business Opinion pointed to a further softening in economic growth.

Key Quotes

“Businesses are highlighting sluggish demand and low profitability.”

“While cost pressures have eased, strong competition means that margin squeeze has continued.”

“With businesses expecting economic conditions to remain soft, plans for capital expenditure and hiring have been scaled back.”

“All of this leaves the RBNZ confronting a very familiar picture of sluggish demand and lingering softness in inflation. That reinforces our expectations for a November rate cut.”