RBNZ: Expect a further 25bp cut in the OCR in November - Westpac

Sean Callow, Research Analyst at Westpac, notes that the RBNZ kept the Official Cash Rate at its record low of 2% in September, but they reiterated that “further policy easing will be required to ensure that future inflation settles near the middle of the target range.”

Key Quotes

“The RBNZ repeated that a decline in the exchange rate is “needed”, quite strong as far as the RBNZ’s choice of words goes.

Our economics team in Auckland expects a further 25bp cut in the OCR in November, to a new low of 1.75%. Pricing for a cut at this meeting is about 70%. Whether there will be a need for more rate cuts beyond 1.75% is still open to debate.”