October 01, 2024 at 10:51PM
I posted yesterday on the 50bp rate cut projection from BNZ:
More on BNZ forecasting a 50bp interest rate cut next week from the RBNZ
Westpac NZ too, has lowered its projections for the Official Cash Rate (OCR), now anticipating 50 basis point cuts in both October and November.
According to the latest analysis from the Westpac NZ Economics Team, inflation appears well-contained at around 2%, while the broader economy remains sluggish.
The rationale for maintaining rates significantly above the neutral level is increasingly tenuous. With global central banks reacting to similar economic dynamics and adjusting policy, the Reserve Bank of New Zealand is likely to follow suit, particularly considering the extended gap in its meeting schedule from November to February.
Re that WPAC comment on the “extended gap in its meeting schedule from November to February”, yes, its nearly three months!
This article was written by Eamonn Sheridan at www.forexlive.com.
