RBNZ to cut by 25bp in July, Sept, Oct – Westpac

FXStreet (Bali) – Westpac is now expecting the RBNZ to cut interest rates by 25bp at each of the July, September and October RBNZ meetings.

Key Quotes

“Over the past week emerging news has shifted that fourth cut from a risk scenario to a likelihood.”

“Accordingly, we are now forecasting 25bp OCR reductions in July, September and October. This will take the OCR to a low of 2.5% this year.”

“There has been a marked deterioration in NZ economic sentiment, evidenced by our Consumer Confidence, Regional Economic Confidence and Employment Confidence surveys, as well as ANZ’s Business Outlook survey.”

“We’ve also detected a distinct souring of business confidence in our visits to businesses and regions around the country.”

Westpac is now expecting the RBNZ to cut interest rates by 25bp at each of the July, September and October RBNZ meetings.

(Market News Provided by FXstreet)