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Analysts at TD Securities note that the New Zealand’s December quarter GDP rose by +0.6%/q, matching market expectations, and undershooting the RBNZ’s own projection of +0.8%/q.

Key Quotes

“The building blocks of GDP (E) were stronger than even we were looking for (TD +1.0%/q). Consumption (+0.8%pts), business investment (+0.2%pts), dwellings (+0.1%pt), net trade (+0.6%pts) and government spending (+0.4%pts) all contributed to quarterly GDP.”

“The RBNZ meets Mar 27, and we see no need for Governor Adrian Orr to change his prolonged pause and preferred “wait, watch and worry” stance. TD expects the OCR to remain at 1.75% through to November 2020.”