Tag #New Zealand Recession

What is the immediate impact of New Zealand's unexpected economic contraction on its currency and market expectations for interest rates?

New Zealand's economy contracted by 1.0% in the September quarter, exceeding expectations of a 0.2% decline and marking the country's entry into recession. This sharp downturn follows a revised 1.1% drop in the June quarter, representing the most significant two-quarter decline since 1991, excluding the pandemic. The New Zealand dollar fell to a two-year low of $0.5614 following the announcement.