ASB and CBA both expect the Reserve Bank of New Zealand to cut rates twice this year
- ASB cite concerns over wage inflation data and dairy prices
- CBA expect a cut in September and again in October, but note a risk of a cut as soon as June
- Added ...
- Bonus .... 3rd bank also expecting 2 cuts:
- Deutsche Bank expect cuts of 25bp in June and July meetings
- Cite today's employment data ... "The case for easing policy has been strengthened considerably by today's data"
- "RBNZ will continue to harbour concerns about the risks of further fuelling the Auckland housing market
- RBNZ is also concerned about the high level of the exchange rate and the recent evolution of global dairy prices
- We expect that the new projections that the RBNZ will present in the June Monetary Policy Statement will provide sufficient rationale for some policy easing and no obvious rationale for delay."