The Reserve Bank of New Zealand to cut the cash rate this time next year says ANZ on an updated forecast
ANZ expect two more cuts after that
- both in early 2020, which will take the cash rate to 1.0%
More (comment from ANZ) :
- There are multiple drivers of this changed call but in short they come down to a weaker outlook for medium-term inflation, risks around global growth and liquidity, and the proposed capital changes for banks. Our view of the New Zealand growth outlook has not materially changed.
More :
- The RBNZ is likely to conclude that economic momentum is insufficient to deliver inflation sustainably at the midpoint
- Global downside growth risks.
- Global liquidity risks.
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The ANZ update follows a bog miss on GDP data result earlier in the session:
more to come
