RBNZ: August cut more likely than not - ANZ

Research Team at ANZ, suggests that the market is currently pricing in 48% odds of a RBNZ cut in August, and a terminal OCR of 2.01% by February/March next year.

Key Quotes

“By contrast, we see an August cut as more likely than not. While we fully expected the market to adjust higher post-MPS, the degree of upward movement has surprised us, and absent a catalyst for a move higher, we see current market pricing as attractive for receivers.”