That is what an Australian economist is suggesting in today's NZ Herald. Bye bye export sector should that come true. The Hive reported the views of NZX boss Mark Weldon a couple of weeks back. Weldon saw a 1% cut in US rates as potentially very negative for New Zealand. Since then the Fed has cut 1.25%.
The fall off in investor confidence being reported today, the big drop in business confidence reported yesterday, falls in oil prices, and lower than expected dairy production, all suggest to The Hive that the Reserve Bank here should be going back to the drawing board. The case for any increase in NZ rates has all but disappeared. Now the focus should be on when to start cutting.
