New Zealand’s economy remains in a rut

Earlier this week, the RBNZ signalled that rates would need to remain at their current restrictive level until early-2025. However, we think the Bank will shift gears well before then, given the rapidly deteriorating economy. Indeed, PMI data released this week point to activity continuing in free fall. Meanwhile, in Australia, the Albanese government unveiled its new plan to boost housing supply. Although the proposed measures are a step in the right direction, they won’t yield results for years to come.