I'm talking of course about the possible size of cuts to the Official Cash Rate (OCR). However, the pricing has moderated more recently and at time of writing the markets are very much pricing in a 50 point cut. And interestingly, the markets' previous collective conviction that another 50 point cut will be forthcoming in the February review has softened somewhat, though a 50 point move is still heavily favoured. Well, the easiest option for the RBNZ appears to be a 50 point cut on the coming Wednesday. With the 2% target inflation rate well within reach, we believe the RBNZ needs to get the cash rate below 4% ASAP.

Source: Stuff November 24, 2024 00:10 UTC