So, the Reserve Bank has just announced that it has cut by … I don’t know, its 7.30am for me so the Bank is yet to announce it. We have discussed this wildly though (here, here, and here) – so it will be good to see what has happened.
Feel free to do your own announcement in the comments (RBNZ site is here), and I will get to putting an update on this by about 9.20am.
Update: They cut by 150bp – I was wrong and everyone else was right 😉 . DG was right when he said Monday’s numbers were very important – the Bank was looking for a big cut but these numbers definitely set the tone for cuts to come. I am nervous about the size of the contraction in consumption that is being discussed – low petrol prices will get some people spending. But as long as no-one will lend to people I suppose it doesn’t matter 😉
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