The Reserve Bank has today cut the official cash rate (OCR) by 50 basis points to 4.75%. The Monetary Policy Committee said economic activity in New Zealand was subdued, in part due to restrictive monetary policy. Committee members agreed that an OCR of 4.75% was still restrictive and left monetary policy well-placed to deal with any near-term surprises. ASB chief economist Nick Tuffley was more emphatic in his expectation of a 50bps cut this week but conceded it was not a done deal. Kiwibank economists noted market traders and economists had now all positioned for “chunky” 50bps rate cuts.

Source: New Zealand Herald October 09, 2024 00:47 UTC