HSBC expect a 50bp interest rate cut from the Reserve Bank of New Zealand next week

Forecasts of a 50bp interest rate cut from the Reserve Bank of New Zealand on October 9 are piling up:

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, too, are calling for a half percent cash rate cut, citing:

• Q3 Quarterly Survey of Business Opinion (QSBO) highlighted that excess capacity is persisting and that weak demand is the key concern facing businesses … also showed easing price pressures, with businesses reporting that they are now unable to pass higher input costs on to higher prices
• the monthly ‘selected price indices’ – a partial,

  timelier read on CPI – point to further disinflation in Q3, with headline CPI inflation likely to be comfortably back in the RBNZ’s 1-3% target band

HSBC acknowledge significant uncertainty around the call.

The rate was cut 50bp at the prior meeting.

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