Michael Reddell: Former Reserve Bank Economist on the likely way the Reserve Bank will respond to the drop in the GDP
The Mike Hosking Breakfast · Newstalk ZB
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Show Notes
There's uncertainty if the Reserve Bank will change tack following the revelation of New Zealand's deep recession.
Stats NZ figures out yesterday show GDP fell 1% in the three months to September.
It’s also revised the preceding quarter down to 1.1% contraction.
Former Reserve Bank Economist Michael Reddell says it did achieve its goal of bringing inflation under control.
He told Heather du Plessis-Allan he doubts they'll ramp up the size of OCR cuts next year in response to the recession.
Reddell says it's more likely they'll go ahead with a 50 basis point cut, then tail them off next year.
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