Capital Economics: RBNZ to cut by 0.5% on Thursday
![](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBDUT09IiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--2067432a2fa7f02ff27fb1028d77ab5518bd5d09/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/LWM-icon-equities.png)
Livewire
With challenges that face the New Zealand economy continuing to mount Capital Economics now expect the RBNZ to cut interest rates to 2.75% on Thursday and move to 2% by the end of the year. “We previously thought that interest rates would be reduced more gradually to a low of 2.75%. If our new forecasts are right, then the New Zealand dollar could eventually weaken from US$0.65 now to around US$0.55.” Westpac NZ’s Chief Economist, Dominick Stephens similarly expects the RBNZ to cut to 2% by the end of the year. Stephens cited “two major developments over the past week” as being the rationale for a recent forecast shift. The continued sharp decline in global dairy prices and the softness of inflation numbers, to read the more (VIEW LINK)
3 topics
![Livewire News](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBDUT09IiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--2067432a2fa7f02ff27fb1028d77ab5518bd5d09/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/LWM-icon-equities.png)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
Expertise
No areas of expertise
![Livewire News](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBDUT09IiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--2067432a2fa7f02ff27fb1028d77ab5518bd5d09/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/LWM-icon-equities.png)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
Expertise
No areas of expertise