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2025-09-18 09:36:20
[The Reserve Bank of New Zealand needs to increase interest rate cuts as the economy is in a sharp decline] Kiwibank chief economist Jarrod Kerr said that the New Zealand economy not only stagnated in the second quarter, but also fell into a sharp decline. The 0.9% contraction in the second quarter far exceeded the expectations of all forecasters. He added that the situation was even worse on a per capita basis, with the per capita economy shrinking by 1.1% in that quarter alone. These data once again prove that the Reserve Bank of New Zealand has not yet implemented appropriate monetary policy and now needs to cut interest rates by 50 basis points in October. Kerr said: "It is time for the Reserve Bank of New Zealand to show leadership."
