Wednesday, 10th October, 2018
Last week’s domestic data continues to point to a loss of economic momentum, with the NZIER Quarterly Survey of Business Opinion suggesting that economic growth likely decelerated. Of note was the further decline in the proportion of firms reporting an increase in trading activity over the past quarter, to levels that are consistent with annual growth of around 2%. If these results are matched by the official data in the coming months, the RBNZ will be facing an economic reality closer to its rate cut scenario presented at the August MPS. See Page 2 for more discussion over what would need to happen to trigger a rate cut from the RBNZ.