RBNZ: 20% chance of June cut - Westpac

Imre Speizer, analyst at Westpac exlained that market pricing for the OCR has stabilised at a low 20% chance of a June cut.

Key Quotes:

"From here we don’t see that being priced much lower."

"The RBNZ will be weighing up the effects of competing forces, (e.g. stronger exchange rate and weak dairy sector vs strong housing market and construction and tourism sectors) on the outlook for inflation."

"We currently expect one further rate cut from the RBNZ in the June Monetary Policy Statement, and we’ll be putting out our detailed arguments for that later this week. In a nutshell, though, the RBNZ has already “promised” one more cut to 2.0%, and events since the March MPS argue for even lower..."