Traders see outside chance RBNZ will cut OCR below 2% next week

Fri, 05 Aug 2016

By Paul McBeth Aug. 5 (BusinessDesk) - Traders say a Reserve Bank interest rate cut next week is a foregone conclusion and a minority are betting the stubbornly high kiwi dollar is a big enough threat to its policy targets to prompt governor Graeme Wheeler to reduce the official cash rate by 50 basis points in one move. The overnight index swaps market has priced in an 86 percent chance the OCR will be cut a quarter point to 2 percent at the Aug. 11 review and a 14 percent chance of a steeper cut to 1.75 percent, according to Reuters dat...

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