RBNZ needs to "spike the punch"

Tue, 28 Apr 2020

Westpac Bank is expecting the central bank to slash the official cash rate another 75 basis points to minus 0.50 in November this year."Monetary policy not only needs to come to the party, it needs to spike the punch," said chief economist Dominick Stephens.There are two things that will stop it from cutting earlier: trading bank's systems aren't currently ready and it committed to keeping the official cash rate at 0.25 percent for a year.Forward guidance and a long lead time would help with both of the above problems, he said...

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