WELLINGTON, June 13 (Reuters) - The New Zealand central bank’s aggressive hiking of the cash rate likely pushed the country into a technical recession in the first quarter, a Reuters poll found, giving traction to the idea the cash rate may have peaked.
This would mean the country moved into a technical recession - two consecutive quarters of negative growth - after the economy contracted by 0.6% in the fourth quarter.
New Zealand's central bank last month signalled it was done tightening after raising rates by 25 basis points to the highest in more than 14-years at 5.5%, ending its most aggressive hiking cycle since 1999.
Yet a handful of economists think the boost to the economy from historically high migration and the return of tourism might force the central bank to do more.
He said he expects the next cash rate move to be a cut.
Persons:
”, Jarrod Kerr, Cyclone Gabrielle, Brad Olsen, Lucy Craymer, Lincoln
Organizations:
Gross, Reserve Bank of New, “, Treasury, Reserve Bank, Zealand, Thomson
Locations:
Zealand, Auckland