Outlook for Borrowers: Post February MPS
Stuart Ritson -
The Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) by 50bp to 3.75% at the Monetary Policy Statement (MPS) on Wednesday. All 23 economists surveyed by Bloomberg forecast the reduction. The Bank had previously signalled the move in November, conditional on the economy evolving in line with its expectations. Pricing in the overnight index swap (OIS) market implied a near-certain chance of a 50bp cut.