RBNZ likely to cut the OCR to 0.75% – ANZ

Analysts at ANZ are expecting the RBNZ will cut the OCR to 0.75% next Wednesday, and leave the door ajar to further cuts while stopping short of overtly signalling them.

Key Quotes

“A downgrade to the RBNZ’s near-term growth forecasts will be the catalyst, despite offsetting developments.”

“We continue to forecast two more 25bp cuts to follow (in February and May), with the final cut being a placeholder for acknowledging the tightening of monetary conditions associated with requiring banks to hold more capital.”