• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

New Zealand central bank paints grim economic outlook

by November 5, 2024
written by November 5, 2024

By Lucy Craymer and Renju Jose

WELLINGTON (Reuters) – New Zealand’s central bank painted a bleak economic picture on Tuesday, citing rising unemployment and delayed business investment plans due to financial hardships.

The Reserve Bank of New Zealand’s (RBNZ) semi-annual Financial Stability Report said weakness in domestic economic activity had become more pronounced and a combination of subdued global growth and high interest rates had reduced demand.

“Rising unemployment is starting to create acute financial difficulties for some households,” it said.

It added that businesses were experiencing lower profitability and weak demand, and lingering cost pressures had made the trade environment more difficult for firms.

Over the past two years, the country’s economic growth had fluctuated, occasionally dipping into negative territory.

The RBNZ expects that the economy contracted in the third quarter, as it raised the cash rate to temper demand and bring down inflation. Unemployment is on the rise and sentiment remains subdued.

Since August, the central bank has cut the official cash rate by 75 basis points as inflation eased.

RBNZ Governor Adrian Orr told a press conference that the real economy was lagging the interest rate cuts and getting through that lag was a concern.

“You don’t want surprises or shocks to the downside during that period,” Orr said.

While the economy was struggling, the central bank said the country’s financial system remained resilient and that risks to the system remained contained.

The RBNZ said banks are anticipating a slight increase in non-performing loans though still below levels seen in previous recessions.

“New Zealand banks are well positioned to continue supporting households and businesses, including effectively handling any potential loan defaults,” Deputy Governor Christian Hawkesby said.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
China’s services activity picks up as conditions improve, Caixin PMI shows
next post
Australia central bank sees inflation still sticky, job growth strong

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Trump and Japan tech conglomerate SoftBank announce $100 billion in U.S. investments
    • USDCHF and USDJPY: New Targets and Prices for the New Week

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy