Outlook for Borrowers: Post November MPS
Stuart Ritson -
The Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) by 50bp to 4.25% at the Monetary Policy Statement (MPS) on Wednesday. This aligned with consensus expectations - economists were unanimously forecasting a 50bp reduction in the OCR. The overnight index swap (OIS) market fully discounted a 50bp cut and was pricing a small chance of a larger 75bp reduction.
Outlook for Borrowers: Post October MPR
Stuart Ritson -
The Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) by 50bps to 4.75% at the Monetary Policy Review (MPR) on Wednesday. This aligned with consensus expectations where most economists had anticipated a 50bps reduction in the OCR. The overnight index swap (OIS) market was pricing an approximate 90% chance of 50bps cut ahead of the decision.