New Zealand Economy Grew More Than Forecast in Second Quarter

New Zealand’s economy grew at the fastest pace in two years in the second quarter, prompting markets to pare bets on an interest-rate cut. The RBNZ has said it’s closely watching developments in the current quarter, when it wants to see evidence that fiscal stimulus is boosting growth. While today’s report was “undeniably stronger than we had anticipated” and will provide the RBNZ with some reassurance, the central bank “will not be complacent about downside risks,” said Liz Kendall, senior economist at ANZ Bank in Wellington.