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.