9 Jun 2015
RBNZ: 50bps of cuts in 2 months eyed - ANZ
FXStreet (Bali) - Mark Smith, Senior Economist at ANZ, notes that downside risks are crystallising in the New Zealand economy, with today's total NZ manufacturing sales volumes, down 0.3% sa in Q1, supporting the case.
Key Quotes
"The manufacturing sector is set to make a broadly neutral contribution to Q1 GDP, with our GDP pick currently +0.6% q/q."
"Downside risks are crystallising and the outlook is for slowing momentum in the economy, with the high (but easing) NZD TWI a significant headwind."
"A lower OCR will help counter this, and we expect 50bps of cuts over the next couple of months."
Key Quotes
"The manufacturing sector is set to make a broadly neutral contribution to Q1 GDP, with our GDP pick currently +0.6% q/q."
"Downside risks are crystallising and the outlook is for slowing momentum in the economy, with the high (but easing) NZD TWI a significant headwind."
"A lower OCR will help counter this, and we expect 50bps of cuts over the next couple of months."