Flat N Zealand economy prompts rate cut talk

21 June, 2019 12:00 AM printer

WELLINGTON: New Zealand’s economic growth remained sluggish at 0.6 percent in the first three months of 2019, official data showed Thursday, fuelling expectations of another interest rate cut before year’s end.

The modest increase in gross domestic product for the March quarter was the same as the growth rate in the final three months of 2018, Statistics New Zealand said, reports AFP.

It said the quarterly figure was boosted by a 3.7 percent rise in construction and brought the country’s annual growth to 2.7 percent for the year to March 31.

The Reserve Bank of New Zealand cut its base rate to a record low of 1.5 percent in May, attempting to boost slowing growth.