BNZ on their outlook for the Reserve Bank of New Zealand:
- while we see the first OCR cut in November, we reiterate that we wouldn’t rule out an earlier start to OCR cuts including at the Bank’s August meeting which we see as live.
- We continue to believe that easier monetary conditions are required.
BNZ see a material reduction in the OCR over the coming year or two citing:
- struggling economic activity
- a trend softening in the labour market
- associated receding inflationary pressure
RBNZ meet next week
