Economics
RBNZ Says Rate-Cut Chances Have Increased on Weaker Growth
- Need to see growth picking up in third quarter, McDermott says
- ‘We’ve been pushed nearer to that trigger point’ of easing
Ports of Auckland terminal
Photographer: Brendon O'Hagan/BloombergThis article is for subscribers only.
New Zealand’s central bank said the chances of an interest-rate cut have increased and it will be watching growth data closely to see whether an expected pickup materializes.
“We’ve been pushed nearer to that trigger point” of cutting rates, Reserve Bank Assistant Governor John McDermott said in an interview Thursday in Wellington. “We’re putting a stake in the sand here and saying we expect growth to accelerate” in the third quarter. If it doesn’t “that means we’ve got something wrong and we’re going to have to reconsider where we’re at,” he said.