Westpac Bank now expects the RBNZ to cut in October

(Image: NZME)

Mon, 05 Aug 2024

Westpac Bank now expects the Reserve Bank of New Zealand to start cutting rates in October versus its prior view of November.“We now see the RBNZ [Reserve Bank of NZ] starting to temper the degree of restriction from their October Monetary Policy Review by reducing the OCR [official cash rate] by 25bp to 5.25%,” chief economist Kelly Eckhold said.He also expects another 25bp rate cut in November, taking the OCR to 5.0% by year-end.“Our longer-term forecast for the OCR is unchanged, with the OCR to fall to 4.5% at the May 2025...

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