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”.
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