Previously, ASB had been expecting the OCR to be held at 5.5% until February next year. Tuffley said households were starting to buckle under higher interest rates and inflation indicators were softening quickly. ASB put its OCR call under review immediately after the survey was released and ANZ, which still expects a February cut, said the case for a November cut was building. RBNZ will release full monetary policy statements in August and November, before going on a three month hiatus until February. Tuffley said monetary policy had been “leaning hard against inflation for over two and a half years now” but inflation had consistently been stronger than expected.

Source: Stuff July 04, 2024 18:40 UTC