Weak New Zealand Retail Sales Could Limit Further RBNZ Rate Rises
Dow Jones
Aug 24
Soft New Zealand 2Q retail sales data could limit further interest-rate increases by the Reserve Bank of New Zealand, says Yen Nguyen, economist at ASB.
With plenty of headwinds, expect consumer spending to be moderate throughout the second half of 2026, with a meaningful recovery in consumer activity likely delayed until 2027, he says.
The softness in consumer spending outlook poses some downside risk to ASB's forecast for a peak in the official cash rate at 3.25%, Nguyen adds. But at this stage, ASB is sticking with its forecast.
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