The RBNZ cut the OCR by 50bps to 4.25% today:
- RBNZ Gov says it’s a misunderstanding that RBNZ projections show slower pace of rate cuts
- RBNZ Monetary Policy Statement Media Conference – live link
- What is the Reserve Bank of New Zealand even doing? This is a horror ‘typo’/link
- New Zealand dollar has surged higher after the Reserve Bank of New Zealand 50bp rate cut
- Reserve Bank of New Zealand cuts cash rate by 50bp, as expected
Westpac expect another 50 cut at the next RBNZ meeting on February 19.
WPAC cite (in brief):
- OCR forecast profile revised down, shows the OCR at 3.55% at the end of 2025
- Governor Orr indicated the forward track was consistent with a 50bp cut at the February MPS but then a slower pace later in 2025
- Orr indicated neutral OCR likely lies in the 2.5% – 3.5% range
- RBNZ’s forecasts for economic growth have been revised down
- peak unemployment rate has been revised down to 5.2%
- Inflation is forecast to remain at or above 2%
- non-tradables inflation has been revised up in the near term
- remains some uncertainty on how quickly domestic inflation pressures will normalise, balanced by uncertainty on how quickly the economy will respond to interest rate cuts.
This article was written by Eamonn Sheridan at www.forexlive.com.
