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Researchers at UOB Group in the Quarterly Global Outlook expect the RBNZ to refrain from acting on rates for the remainder of the year.

Key Quotes

“The RBNZ delivered a more-aggressive interest rate cut in August, slashing its OCR by 50bps to 1.00%. We had thought the RBNZ would prefer more time to evaluate the impact of the first rate cut in May, and wait out for further developments on the economic front”.

“Nonetheless, we see August’s bigger-than-expected move as pre-emptive in nature and the RBNZ is likely to wait it out before considering further cuts in interest rates again. For now, we are keeping our year-end OCR forecast unchanged at 1.00%“.

“But just like the RBA, developments in the global backdrop will have important implications on the timing and extent of further easing”.