New Zealand's GDP fell 1.0% in the third quarter, and the money market focused on the extent of the rate cut

According to Jinshi Data, New Zealand's GDP fell by 1.0% in the third quarter, and the economy has hit a low point. Henry Russell, an economist at ANZ Bank, said that the money market is weighing whether the Reserve Bank of New Zealand will cut interest rates by 50 basis points or 75 basis points at its monetary policy meeting at the end of February next year.

Despite the apparent rebound in high-frequency data, ANZ Bank still prefers the Reserve Bank of New Zealand to cut interest rates by 50 basis points. However, any dovish surprises in future data could lead to a 75 basis point cut.