October 16, 2024 04:13 GMT
STIR: Q3 CPI Pushes Expected NZ OCR Further Below AU’s
STIR
RBNZ-dated OIS pricing closed 2-5bps lower following today’s CPI data, and 5-9bps softer across meetings on the day.
- The market is pricing in 58bps of easing for the November meeting, with a cumulative 99bps by February and 161bps by July.
- Relative to Australia, New Zealand's official rate is projected to be 60bps lower by July, despite currently sitting 43bps above Australia's cash rate.
Figure 1: Official Rate & OIS Pricing: AU vs. NZ (%)
Source: MNI – Market News / Bloomberg
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