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RBNZ: MNI RBNZ Review-Oct 2024: Another 50Bp Likely In November

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EXECUTIVE SUMMARY: 

  • The RBNZ increased its pace of easing by cutting the OCR 50bp to 4.75% yesterday, as expected, after starting the easing cycle with 25bp in August. The MPC felt that “restraint” could be lessened as inflation is “within” the 1-3% target range and approaching the mid-point.
  • The next RBNZ decision is on November 27 and then there isn’t a meeting until February 19. There are already expectations for another 50bp cut next month and there was nothing in today’s statement to temper that view.
  • Thus, it looks like they will ease by this size again especially given the close to two month gap before the next meeting and that rates are still well above neutral. 

FOR THE FULL PUBLICATION PLEASE USE THE FOLLOWING LINK: MNI RBNZ Review - October 2024.pdf

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EXECUTIVE SUMMARY: 

  • The RBNZ increased its pace of easing by cutting the OCR 50bp to 4.75% yesterday, as expected, after starting the easing cycle with 25bp in August. The MPC felt that “restraint” could be lessened as inflation is “within” the 1-3% target range and approaching the mid-point.
  • The next RBNZ decision is on November 27 and then there isn’t a meeting until February 19. There are already expectations for another 50bp cut next month and there was nothing in today’s statement to temper that view.
  • Thus, it looks like they will ease by this size again especially given the close to two month gap before the next meeting and that rates are still well above neutral. 

FOR THE FULL PUBLICATION PLEASE USE THE FOLLOWING LINK: MNI RBNZ Review - October 2024.pdf