New Zealand’s Retail Sales disappointed in July, falling -0.8% versus -0.3% expected. June’s result was also revised lower to 0.1% from the originally reported 0.9%. The release bolsters the case for aggressive interest rate cuts from the Reserve Bank of New Zealand to check the economy’s rapid slide into deeper recession. Yesterday saw policy makers deliver a 50 basis point cut to benchmark rates where only a 25-point cut was forecast. The bank also revised down its growth forecast for GDP, saying the economy probably shrank -0.2% in the second quarter and will contract -0.3% in the three months to October. Bank Governor Alan Bollard put it plainly, saying “We’re in a loosening mode [and] and we’ve got room to move.” - [I]Ilya Spivak, Currency Analyst for DailyFX.com
[/I]For a complete listing of data releases for this week, please see the DailyFX Economic Calendar.