Central Banks
Investors Bet on RBNZ Rate Cut Next Week Amid Global Repricing
- BNZ also predicts Aug. 14 rate cut as economy is ‘buckling’
- Wednesday’s labor market data may show jump in jobless rate
The Reserve Bank of New Zealand (RBNZ) building in Wellington.
Photographer: Mark Coote/BloombergThis article is for subscribers only.
Investors and some economists now expect New Zealand’s central bank to start cutting interest rates next week as markets globally ramp up bets on imminent monetary policy easing.
The Reserve Bank will cut the Official Cash Rate by 25 basis points to 5.25% in its Aug. 14 Monetary Policy Statement and deliver two further reductions to 4.75% by the end of the year, Bank of New Zealand Head of Research Stephen Toplis predicted Tuesday in Wellington. Investors expect even more rapid action, with the OCR falling from 5.5% to 4.5% by November, swaps data show.