Westpac now expects the Reserve Bank of New Zealand to step up its easing cycle, forecasting the Official Cash Rate will be lowered to 2.5% at the October meeting and then cut again to 2.25% in November.
- 50bp cut followed by a 25bp cut
The bank said the RBNZ faces mounting pressure to loosen policy more aggressively as growth slows and inflation moderates, leaving scope for back-to-back moves before year-end.
This comes after the terrible data earlier:
This article was written by Eamonn Sheridan at investinglive.com.