New Zealand’s Retail Sales grew 0.4% in August, a stark improvement from the -0.7% contraction seen in the preceding month. Cheaper oil and dramatic interest rate cuts boosted consumer sentiment: crude has fallen over 45% to date since peaking at $147/barrel in mid-July while the
Reserve Bank of New Zealand surprised with a 0.50% rate cut, the first in 5 years. The RBNZ is scheduled to announce rates again next week, with trading in overnight index swaps suggesting that the markets expect Alan Bollard and company to cut rates by an additional 100 basis points. Longer term, markets are pricing in at least 200 basis points in monetary easing over the next 12 months.
For a complete listing of this week's data releases, please see the DailyFX Economic Calendar.