NZ monetary policy outlook: time for a cut? - Westpac

Analysts at Westpac offered their monetary policy outlook.

Key Quotes:

"Market pricing for a November OCR cut has been very stable during the past two weeks at slightly more than 80% (currently 84%), undisturbed by the offshore events which have pushed yields higher. However it has affected pricing for easing beyond 10 Nov, removing almost any chance of that occurring."

"This week the RBNZ’s survey of inflation expectations will be released on Wednesday."

"This and the NZ jobs data are the last remaining pieces of information ahead of the 10 November Monetary Policy Statement. The RBNZ has highlighted the risk that persistently low inflation could drag inflation expectations down further to levels that are inconsistent with meeting the inflation target."

"So this week’s report will have some bearing on how much lower the RBNZ is prepared to take the OCR."