Overview

• The ANZ-Roy Morgan index increased to 94.6 from 92.0 in August, remaining below the 100 level that signals optimism.
• ANZ chief economist Sharon Zollner said monetary easing is starting to show through and she expects a markedly better year ahead.
• Recent national accounts showed a 0.9% quarter-on-quarter contraction in Q2 GDP, worse than the consensus forecast and weighing on sentiment.
• Attention turns to the Reserve Bank of New Zealand’s policy meetings on October 8 and November 26 as leadership transitions to Anna Breman on December 1.
• Some market commentary is speculating on a 25 basis-point rate cut as soon as October, which has not been signaled by the central bank.