RBNZ will cut the cash rate to 2% this year says HSBC

A client note from HSBC economics on the outlook for Reserve Bank of New Zealand monetary policy in 2016

• Forecast a 25bp cut in Q2
• And also in Q3

Revising their earlier call for just one cat in 2016

They cite persistently low inflation - saying it is a 'test' of the central bank's 'inflation targeting regime'

-

(Note: the RBNZ have an inflation target of 1 - 3%, and as yesterday's data showed, they ain't even close)