October 23, 2024 04:39 GMT
STIR: CORRECTION - NZ-AU Official Rate Spread To Narrow -75bps By July 2025
STIR
*** Correction To Pricing For November RBNZ Meeting
RBNZ dated OIS pricing closed mostly little changed but late 2025 meetings firmed 3-5bps.
- The NZ market is pricing in 57bps of easing for the November meeting, with a cumulative 103bps by February and 154bps by July.
- Relative to Australia, NZ's official rate is projected to be 75bps lower by July, despite currently sitting at 43bps above Australia's cash rate.
Figure 1: Official Rate & OIS Pricing: AU vs. NZ (%)
Source: MNI – Market News / Bloomberg
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