RBNZ: November cut to take the OCR to 0.75%? – ANZ

Sandeep Kanihama FXStreet Contributor

ANZ analysts note that amid the financial market turmoil, they have added another 25bps cut for September from RBNZ to their forecasts, implying an OCR of 0.75% by year-end.

Key Quotes

“The Q2 unemployment rate unexpectedly dropped from 4.2% to 3.9%. Then came the RBNZ; they decided to load our August and September 25bp cuts into one big 50bp hit in August, cutting the OCR to 1% and signalling that it could go even lower.”

“We still expect a November cut to take the OCR to 0.75%, but note that September remains live with this pre-emptive Committee at the helm.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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