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RBNZ: Rate Cut Likely at June Meeting - Westpac
Imre Speizer, Research Analyst at Westpac, notes that the RBNZ held the
OCR steady at 2.25% on 28 April, in line with Westpac’s forecast.
Key Quotes
“But the outlook from RBNZ governor Wheeler was identical to March:
“Further policy easing may be required to ensure that future average
inflation settles near the middle of the target range.”
We had been expecting a stronger hint regarding the June MPS. Still, a
rate cut at that meeting remains our base case and after the RBA
surprises, markets are pricing a 50% chance of a June easing, with a
1.75% cash rate about a 45% chance by year-end.
Westpac is sticking to a 2% cycle low on the OCR.”