Michael Reddell: Former Reserve Bank Economist on the likely way the Reserve Bank will respond to the drop in the GDP
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. LISTEN ABOVE See omnystudio.com/listener for privacy information.