Reserve Bank of New Zealand rate cut next week, 97% chance of a 50 basis points

All the previews I have been posting of the upcoming Reserve Bank of New Zealand meeting, on October 9, are exp[ecting a 50bp rate cut:

• RBNZ preview – most likely cut the cash rate by 50bps next week, and again in November

• ANZ say the path of least resistance for the RBNZ is a 50bp interest rate cut next week

• More on BNZ forecasting a 50bp interest rate cut next week from the RBNZ

• Here is another forecast for a 50bp interest rate cut from the RBNZ next week
• HSBC expect a 50bp interest rate cut from the Reserve Bank of New Zealand next week

• 100bp of rate cuts coming up from the Reserve Bank of New Zealand, beginning next week

The latest Reuters poll (conducted September 30 – October 3) shows:

• 17 of 28 expect the RBNZ to cut its official cash rate by 50 basis points to 4.75%
• remaining 11 predicted a 25 basis point cut

Interest rate futures, meanwhile, are pricing in around a 97% chance of a 50 basis points next week, and over 90 basis points of cuts by the end of this year.

This article was written by Eamonn Sheridan at www.forexlive.com. Source