Dorsey Securities: There is an urgency for the Reserve Bank of New Zealand to cut interest rates

On August 9th, Jin Shi Data reported that Prashan Newnaha, a strategist at DNB Markets, said that there is a certain urgency for the Reserve Bank of New Zealand to start cutting interest rates. He said that since 2022, the economy has been in and out of recession, and economic activity data shows that the outlook for the rise has further deteriorated, so the conditions for a rate cut are already in place. He added that there are clear signs that the labor market is slowing down, and the output gap of the New Zealand economy may become more negative. Inflation is falling as expected, and inflation expectations are declining. It is a more cautious approach for the Reserve Bank of New Zealand to cut interest rates by 25 basis points next week.