RBNZ rate cut unlikely – for now
Without exception, all the economists surveyed were certain the RBNZ would not change the OCR’s current rate of 3.5% next week. Most of them also believed the rate would remain unchanged for the rest of 2015.
Two notable exceptions were the ASB’s Chris Tennent-Brown who thought there was a 25% probability of a cut and Westpac’s Dominick Stephens (pictured) who said there was a 40% chance of a cut.
However, many said the RBNZ might start to open the door to rate cuts over the course of this year.
Deutche Bank’s Darren Gibbs said that, with very low current inflation and the very high exchange rate very high, the RBNZ will adjust their language to drop the pretence there is any near-term prospect of a rate hike.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
