RBNZ to deliver a 25bps cut to the OCR – RBC CM

Research Team at RBC Capital Markets, expects RBNZ Governor Wheeler to deliver a 25bps cut to the OCR, taking it to 2%.

Key Quotes

“The brief economic update provided in late July left little doubt that an easing would be delivered, consistent with the ongoing undershoot in inflation, weak wage growth, stubborn exchange rate, and recent announcement of further macro-prudential measures. While our baseline scenario is that this is the final cut of this cycle, risks are skewed to further easing beyond 2%. The set of forecasts provided in the full quarterly Monetary Policy Statement will be important in refining this view.”