ASB says RBNZ will cut cash rate to 2.5% by October

ASB expect the Reserve Bank of New Zealand to cut the cash rate at the July, September and October meetings for a total of 75bp, which would bring the rate down to 2.5%

Citing weakening in

• business confidence
• consumer confidence (especially in dairy farming regions)
• overnight dairy auction

And also citing an expected slower recovery in dairy prices

-

The next RBNZ meeting is on July 11

If you're just eating your cornflakes, put some extra milk in the bowl. If having a coffee, make it a latte. Every little bit helps.

-

ps. 'ASB' is now known as ASB Bank.

They used to be Auckland Savings Bank, which was shortened to just ASB. And that's what they were called, just ASB.

But now they want to be called ASB Bank. So, which is sort of Auckland Savings Bank Bank. You know, like ATM machine? Oh well, its their bank, ASB Bank it is. ASB Bank is owned by the Commonwealth Bank of Australia.