Westpac now assess the RBNZ likely to cut again:

  • Reserve Bank reduced the OCR by 50 basis points
  • This was a stunning decision - in the history of the OCR, the only times the OCR has been cut by 50bps or more have been after the 9/11 terrorist attack, during the GFC, and after the Christchurch earthquake.
  • given the Committee's clear willingness to reduce the OCR, and our view that there is some further economic softness to come in the near term, we now expect another 25bp cut in November

---

Westpac earlier were pointing to market pricing indicating no further cuts but their analysis suggest that'll change as the economy weakens.