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