HSBC have revised their RBNZ rate call (previously saw RBNZ on hold this year, rate increases in 2016)
- They see a cut in the OCR to 3% by the end of this year
Cites falling business confidence, weaker global conditions, very low inflation and recent tightening of macro-prudential settings
Says timing is uncertain
"We slightly favor a June cut"
"We expect another cut to 3% in Q4"
The news hit the Bloomberg in the seconds leading up to the RBA announcement