As recently as late May, the Reserve Bank thought it wouldn't need to cut rates until well into 2025. However, a batch of leading indicators revealed a slump in economic activity through June, and the RBNZ decided to hit the brakes by lowering the official cash rate in its August monetary policy statement. Reserve Bank chief economist Paul Conway talks to Bernard Hickey about why the RBNZ decided to change course, what kinds of data they are lacking compared to other central banks, and what they can't change about our economy.

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