Reserve Bank of New Zealand rate cut expected on Wednesday 27 November – preview

The Reserve Bank of New Zealand is widely expected to cut its cash rate target by 50bp this week.

Preview comments from KiwiBank:

• we’re expecting another 50bps rate cut on Wednesday. It’s the right thing to do. We know it, the market knows it, and the RBNZ should know it too.
• The updated OCR track will be the focus, and has the most market-moving potential. We expect the track to be lowered, and rate cuts pulled forward. Another quarter will be added to projections, which we hope will signal a move closer to neutral.
• The updated economic projections may also show a faster turnaround in economic growth compared to their last set of forecasts. Again, the outlook has improved marginally given the RBNZ has delivered more easing than expected.

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Earlier:

• Reserve Bank of New Zealand (RBNZ) Shadow Board recommend a 50bp cash rate cut this week

• ANZ forceast a 50bp interest cut from the RBNZ next week

  • Reuters poll: RBNZ to cut cash rate to 4.25% on November 27
  • Goldman Sachs expects a 50bp Reserve Bank of New Zealand rate cut this month

2pm New Zealand time on the 27th is:

• 0100 GMT on the 27th
• 2000 US Eastern time on the 26th

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