Further responses to the RBNZ announcement - ANZ forecast more interest rate cuts ahead

The Reserve Bank of New Zealand decision today was a surprise:

• RBNZ announce cash rate on hold - surprise decision

• NZD jumps on the 'on hold' RBNZ interest rate decision
• RBNZ leave cash rate on hold - summary of statement
• RBNZ Gov. Orr: On hold decision was unanimous
• More from RBNZ Gov Orr - monetary policy is effective, see impacts coming through

• WPAC response

ANZ now:

• expect the RBNZ to cut rates again in May and August next year (ANZ were previously at today for a cut, 2 in 2020)
• say risk to forecast is for earlier and or more than 2 cuts

Citing:

• they expect the RBNZ to be disappointed on economic growth
• RBNZ has made a meaningful revision lower heir estimate of the economy's 'speed limit' - makes future aggressive action less likely