An April cut likely the wrong move – Westpac Bank chief economist

Westpac Bank chief economist Kelly Eckhold urges caution. (Image: NZME)

Wed, 02 Apr 2025

The Reserve Bank of New Zealand is expected to cut by 25 basis points next week to 3.50%, but not everyone thinks it should.“This OCR [official cash rate] cut is likely the wrong thing to do,” Westpac Bank chief economist Kelly Eckhold said. The Reserve Bank of NZ's (RBNZ) next monetary policy decision is on April 9. “A more mandate-consistent approach would be to leave the official cash rate unchanged at this meeting and consider a 25 bp cut at the May monetary policy statement [MPS],” he said. Howev...

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