November 28, 2024 at 03:33AM
Everything was on the table this week
But a consensus was reached for a 50 bps rate cut very quickly
Did not feel the need to do more than 50 bps because there is still work to do on inflation
Have to make sure core inflation is sustainably at target mid-point
Her remarks are consistent with what Orr said in his press conference this week. A rate cut for their next meeting in February is fully priced in, with odds of a 25 bps move at ~68%. The remainder is tied to a 50 bps move. As for their next three meetings through to May 2025, markets are pricing in ~67 bps of rate cuts in total for now.
This article was written by Justin Low at www.forexlive.com.
RBNZ’s Silk: A decision on 25 bps or 50 bps rate cut is on the table for February