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BNZ believe that "the weaker labour.....>

NEW ZEALAND
NEW ZEALAND: BNZ believe that "the weaker labour market data, plus the CPI data,
will almost certainly increase the Reserve Bank's discussion around the
possibility of a rate cut. However, from our perspective the data are not soft
enough for that to happen at next week's MPS. If the Bank is to be pushed over
the edge, we think that waiting until August would be a wiser option. After all,
there is no urgency to move. There is no sign that the economy is about to tank
any time soon, interest rate settings are already highly stimulatory and there
is still risk on the other side of the equation, i.e inflation pressures are
still there in spades."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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