ANZ: The Reserve Bank of New Zealand may cut rates by 50 basis points for the last time tomorrow

ChainCatcher news, ANZ Bank stated that it expects the Reserve Bank of New Zealand to be more cautious after the rate cut on Wednesday. Chief Economist Sharon Zollner said, "This may be the last time we cut by 50 basis points."

However, considering that the Reserve Bank of New Zealand's central estimate for the neutral interest rate is 3%, the risk of the policy rate bottoming out tends to be below our forecast of 3.5%. "The tone of the policy statement is expected to reflect a moderate confidence in inflation while acknowledging the upside risks to overall inflation." Due to unexpected GDP, the interest rate trajectory may decline, but considering the mixed signals from capacity indicators, along with the offsetting effects of the New Zealand dollar depreciation and rising export prices, we expect the overall trajectory will not change significantly.