More on the RBNZ decision to cut rates

Earlier:

  • RBNZ - analyst responses
  • RBNZ Governor Wheeler press conference
  • RBNZ: Cuts rates by 25bp, as expected

CBA:

  • Says the lower NZD and rates in NZ are a 'perfect' outcome for the RBNZ
  • Bank is trying to stimulate more growth and inflation
  • Says an October cut is unlikely, but will cut before March 2016

ANZ:

  • Say RBNZ more dovish than they expected
  • Say another cut is needed, unlikely to be in October
  • Another cut in Q1 next year

Capital Economics:

  • Says they are not expecting an NZ recession
  • But wouldn't be surprised by one
  • Think the RBNZ's new economic forecasts are still too optimistic

RBC:

  • This morning's statement is a 'clear green light' for more NZD weakness
  • Still calling for an October cut, but risk it will be pushed to December