RBNZ: Market pricing 76% chance of OCR cut in November - Westpac

Imre Speizer, Research Analyst at Westpac, suggests that the market is pricing for a 25bp OCR cut by RBNZ currently stands at 1.75% by the 10 November meeting implies a 76% chance, higher than a few weeks ago.

Key Quotes

“NZ economic news continues to be good, but inflation expectations remain uncomfortably low. In addition, the multi-month surge in dairy prices has stalled. And the RBNZ in September reaffirmed its intention to ease again, keeping its guidance language unchanged. The phrase “...further easing will be likely.” is about as explicit as the RBNZ can be that it will cut in November, barring major surprises to its forecasts.”