The New Zealand Institute of Economic Research’s ‘Shadow Board’, comprising of prominent economists, academics and business people, has warned the central bank about overly aggressive easing policy ahead of the rate decision at 22:00 BST/17:00 EDT today.
The NZIER expects the Official Cash Rate (OCR) to be trimmed by 25bps to 3%, inline with the consensus forecast. Note there is some support for a 50bps cut in the market and Stir is pricing in slightly more than 25bps cut at the moment.
NZDUSD is slightly lower on the day but 0.6600 remains the floor for now.
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