Outlook for Borrowers: Post April MPR
The Reserve Bank of New Zealand (RBNZ) reduced the Official Cash Rate (OCR) by 25bp to 3.50% at the Monetary Policy Review (MPR) on Wednesday. This was unanimously anticipated by economists. The Bank had previously provided guidance for the 25bp move during the February Monetary Policy Statement (MPS). The overnight index swap (OIS) market implied a chance of a larger 50bp cut, given the recent increase in global trade barriers.
Outlook for Borrowers: Post February MPS
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.