Yes ladies and gentlemen, the Reserve Bank of New Zealand meet on December 10 (local time)
Commentary from ASB ... in brief:
- We expect a 25 basis point OCR cut at the December MPS, largely due to the recent lift in the TWI.
- We have a much weaker medium-term view of underlying inflation pressures than the RBNZ.
- We 'expect' an unchanged 2.6% end point for the RBNZ's 90-day rate forecast, although we 'hope' it may be lower.
In our view, the lift in the TWI since the September MPS means a rate cut in December should be a done deal. At the October OCR review the RBNZ said "The exchange rate has been moving higher since September, which could, if sustained, dampen tradables sector activity and medium-term inflation. This would require a lower interest rate path than would otherwise be the case."
I'll have more on the RBNZ as we approach the meeting
