Daily Alert: Strong NZ GDP print raises OCR hike odds

  • It may be in the rear vision mirror, but yesterday’s stonking 2.8% qoq Q2 climb in NZ GDP (17.4% yoy) caused a few market ripples, with short-term yields up roughly 5bps and a brief bounce in the NZD.
  • In our view the RBNZ will look through the near-term disruption caused by the recent outbreak, with the path of least regrets necessitating the prompt reduction of monetary stimulus.
  • Much quieter today in Australasia with the NZ August manufacturing PMI out.

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