Reserve Bank of New Zealand meet Wednesday, November 27, 2024 – preview

BNZ preview the Reserve Bank of New Zealand meeting on November 27, saying that arguments for a 25, 50, or 75bp all have merits. Analysts at BNZ, though, say that a 50-point cut this meeting is their central view.

Citing:

• economic spare capacity continues to
  grow and will do so for some time
• inflation will remain well contained around the 2.0% mark
  and the unemployment rate will rise further over the next
  few quarters.
• Given the current level of the cash rate lies well above the
  range of possible neutral rates we see strong justification
  for a greater-than-25-point move.
• Equally, though, we don’t think that what we are
  experiencing is a shock that requires a knee-jerk response.
  We’re not in a GFC or a pandemic but we are in a phase
  something more akin to a “normal” economic cycle.
  Consequently a 75 point move is neither needed nor
  desirable.
• Capping things off, the market is currently pricing in a 50
  point cut and there is no need for the RBNZ to provide a
  shock which could result in unnecessary instability in
  interest rates, the currency and growth.

***

Earlier:

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