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VIEW: KiwiBank "continue to expect the OCR.....>

RBNZ
RBNZ: VIEW: KiwiBank "continue to expect the OCR to head lower from here. Our
interpretation of current events demands more policy response. We still forecast
two rate cuts from here. We'll put the higher hurdle to cut into February, and
postpone the expect next move to May. Developments offshore will likely cause
another cut to 0.5% in August 2020. But it's not monetary policy we're really
after. Fiscal policy is the missing ingredient New Zealand desperately needs.
The Government must step up and deliver credible infrastructure spend. If we are
going to build a better foundation for future growth, we need to invest in
quality infrastructure and focus on measures to lift our productivity and
potential growth."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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