Post-HYEFU NZGB Supply Update
New Zealand Debt Management (NZDM) updated the bond programme today, alongside the Half Year Economic and Fiscal Update (HYEFU). Gross NZ Government Bond (NZGB) issuance has been increased by a total of NZ$3 billion over the forecast period to June 2029, compared with the Budget Economic and Fiscal Update (BEFU) in May. The 2029/30 year has been added, and gross issuance for that year is forecast to be NZ$30 billion.
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Outlook for Borrowers: Post November MPS
The Reserve Bank of New Zealand (RBNZ) reduced the Official Cash Rate (OCR) by 25bp to 2.25% at the Monetary Policy Statement (MPS) on Wednesday. The rate cut was widely expected by analysts. Market pricing implied a small chance of a larger cut following the surprising 50bp move in October. The decision was reached by 5-1 majority. The dissenter preferred to leave rates on hold, which was the alternative option discussed by the Committee. This was Governor Hawkesby’s final meeting with Dr Anna Breman beginning her term on 1 December.