‘Soft’ data on sentiment is positive and this should flow through to hard data, the ratings agency says.
ANZ and Westpac shift goal posts to November rate cut after annual inflation fell to 3.3%.
Annual inflation has fallen faster than expected, reinforcing calls for an earlier OCR cut this year.
The manufacturing sector has been in contraction for 15 months, while households quit buying luxury items.
Annual food prices decline for the first time in nearly six years, Stats NZ data shows.
Kiwibank’s Jarrod Kerr has growing confidence that the central bank’s softer tone signals cuts ahead this year.
Persistent domestic inflation remains a worry, but the central bank confident inflation back in the band later this year.
Today’s latest business survey is in negative gear, which economists say screams out for a rate cut this year.
Two surveys out today paint a bleak picture for the economy, while OCR cuts could be brought forward.
Tough year ahead as manufacturing and construction activity pulls back amid higher interest rates for longer.