Capital Economics: RBNZ to cut by 0.5% on Thursday

With challenges that face the New Zealand economy continuing to mount Capital Economics now expect the RBNZ to cut interest rates to 2.75% on Thursday and move to 2% by the end of the year. “We previously thought that interest rates would be reduced more gradually to a low of 2.75%. If our new forecasts are right, then the New Zealand dollar could eventually weaken from US$0.65 now to around US$0.55.” Westpac NZ’s Chief Economist, Dominick Stephens similarly expects the RBNZ to cut to 2% by the end of the year. Stephens cited “two major developments over the past week” as being the rationale for a recent forecast shift. The continued sharp decline in global dairy prices and the softness of inflation numbers, to read the more (VIEW LINK)


MORE ON



Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.