RBNZ surprises markets with 50bp rate cut
New Zealand central bank reduces interest rates to record-low of 1% on weaker growth projections
The Reserve Bank of New Zealand surprised markets and observers by implementing a 50-basis point rate cut today (August 8). This rate reduction follows a 25bp cut carried out in May. As a result, the official cash rate (OCR) is now at 1%, the lowest level since its introduction in 1999.
“The market and analysts were unanimous regarding a cut today, but no-one was picking a 50bp cut,” says Sharon Zollner, chief economist at ANZ Bank. “The forward OCR track was also much lower than expected, and
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