NZ: Near-term outlook downgraded - ANZ

Sandeep Kanihama FXStreet Contributor

Analysts at ANZ suggest that the New Zealand economy has been evolving broadly as expected, but softening near-term indicators have led them to downgrade the near-term outlook.

Key Quotes

“Economic tailwinds are blowing a little more softly than they once were, and that’s being reflected in waning capacity pressures.”

“We have brought our OCR cut call forward, with a 25bp cut pencilled in for August (previously November), and two follow-up moves in November and February. With the RBNZ now expected to come to the party a little earlier than we previously thought, it shouldn’t be long before the economy gets the stimulus it needs to push economic activity back into inflation-building territory.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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