A majority of members on the New Zealand Institute of Economic Research (NZIER) Monetary Policy Shadow Board are urging the Reserve Bank of New Zealand to deliver another 25-basis-point cut at its November Monetary Policy Statement, taking the Official Cash Rate to
- Shadow Board members said the New Zealand economy is beginning to recover from a low base but still has meaningful spare capacity, making a modest easing move appropriate to support demand.
- They argued that an additional small cut would help reinforce the recovery without sharply increasing inflation risks.
- However, a minority on the panel opposed further easing, warning that monetary policy should avoid becoming overly stimulatory at a time when inflation pressures could re-emerge. Those members favoured holding the OCR steady, emphasising caution over loosening too quickly.
The RBNZ decision is due at 2pm New Zealand time on Wednesday November 26.
Earlier:
This article was written by Eamonn Sheridan at investinglive.com.
