NZ: Near-term outlook downgraded - ANZ

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.”