The economic outlook has deteriorated in both Australia and New Zealand. In Australia, the downturn in the housing market and falling business confidence should mean that GDP growth will continue to soften. In New Zealand, we expect GDP growth to remain subdued for the next two years. Underlying inflation slowed sharply in Australia in the first quarter and stopped rising in New Zealand. In response, we expect both the RBA and RBNZ to begin cutting interest rates to record lows, starting in May
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services