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2025-09-18 10:08:34
[Westpac: New Zealand's economic contraction paves the way for a substantial interest rate cut] Kelly Eckhold, chief economist of Westpac New Zealand, said that New Zealand's economy shrank by 0.9% in the second quarter, far exceeding the expectations of all institutions (including the central bank), which opened the door for a 50 basis point cut in the official cash rate in October. He added that following the action in October, another 25 basis point interest rate cut may be made in November. Eckhold pointed out that this means that the overall economic environment will turn to a highly stimulating one, indicating that the economic outlook in 2026 will be completely different.
