Trade war means slight chance RBNZ cuts by 50bps

The Reserve Bank of New Zealand is tipped to cut by 25 basis points to 3.50%, but the global “Liberation Day” trade storm means there is an outside chance of a bigger cut and a lower end point this year. Markets are currently pricing a 24% chance that the Reserve Bank of NZ (RBNZ) will cut by 50 basis points to 3.25% on Wednesday. A 25bps cut to 3.50% is fully priced. Most economists expect the official cash rate (OCR) to be 3.25% or 3%, but markets now price it at 2.75% by year-end. A week ago, Westpac Bank chief eco...