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