RBNZ: Rate cut likely at June meeting - Westpac

Imre Speizer, Research Analyst at Westpac, notes that the RBNZ held the OCR steady at 2.25% on 28 April, in line with Westpac’s forecast.

Key Quotes

“But the outlook from RBNZ governor Wheeler was identical to March: “Further policy easing may be required to ensure that future average inflation settles near the middle of the target range.”

We had been expecting a stronger hint regarding the June MPS. Still, a rate cut at that meeting remains our base case and after the RBA surprises, markets are pricing a 50% chance of a June easing, with a 1.75% cash rate about a 45% chance by year-end.

Westpac is sticking to a 2% cycle low on the OCR.”