NZD traders - here's an analyst looking for more RBNZ rate cuts ahead
Kiwibank analysts are expecting further interest rate cuts from the Reserve Bank of New Zealand
- forecasts a cut in August
And there is likely to be further after this
In brief, for 3 reasons:
- The rate cuts from the RBA
- likely upcoming Federal Reserve rate cut
- weak NZ business confidence
"Wholesale interest rates drifted lower last week, as the domestic data weakened and central banks offshore cut. We continue to expect the RBNZ to cut the OCR in August. The question is whether the RBNZ will need to do more. The need to cut the OCR to 1% and below, is becoming increasingly likely"
"We haven't committed to saying they will cut after August, but we are waiting for information to push us over the line."
Kiwibank analysts speaking with NZ media