UBS raises its first quarter GDP forecast for New Zealand, just as the Reserve Bank of New Zealand considers raising interest rates.

UBS has revised its forecast for New Zealand's first quarter GDP growth from 0.8% to 0.9%. Economist Stephen Wu stated that the manufacturing sector is experiencing a strong quarter with increasing sales volume. UBS indicated that wholesale trade and moderate retail sales should both make solid contributions to growth. However, their revised forecast is still below the Reserve Bank of New Zealand's expectations, as the central bank predicted a 1.0% quarter-on-quarter GDP growth for the first quarter in May. UBS mentioned that if the results are broadly in line with expectations, the Reserve Bank of New Zealand is likely to raise the official overnight cash rate in July.