Latest data and events
Reserve Bank Governor Graeme Wheeler cut the official cash rate (OCR) by 25 basis points to 2.75 percent on 10 September, returning the OCR to April 2014 levels. The Bank’s 90-day bank bill rate projections point towards a further cut in the OCR, with the ASB Bank expecting another rate cut in October. The BNZ thinks there is a 65 percent chance of a rate cut in October. The ANZ Bank believes that the Reserve Bank is not in a hurry to cut again, while Westpac Bank reckons an October cut is “a close call”.
Regional economic activity rose by 0.3 percent in the June quarter according to ANZ Regional Trends, with economic activity increasing in the North Island but falling in the South Island. The Northland region experienced a rise in economic activity of 1.6 percent, while the Southland and Taranaki regions contracted by 1.6 percent over the quarter.
New Zealand’s merchandise terms of trade rose unexpectedly in the June quarter, up 1.3 percent. Over the quarter, exported goods prices rose by 2.1 percent while imported goods prices rose by 0.7 percent. Dairy product prices rose by six percent, reflecting the higher prices experienced earlier in the year. A bank economist noted that trade data reflects auction price data after about a three month lag.
 
