The RBNZ started the interest rate cutting cycle today by announcing a 25 basis point fall in the official cash rate to 8.00%.
The statement concludes by saying that “we would expect to lower the OCR further”. Expect a wave of interest rate cuts that will pull the OCR down to around 6.00% by late 2009 and for the RBNZ to official lower growth forecasts in the September MPS.
The NZD is now set for a move down through $US0.70 to well below $US0.65 while the yield curve will bullishly steepen and swap spreads contract.
New Zealand: The monetary policy easing cycle begins
July 23rd, 2008 · No Comments
Tags: Forex News
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