RBNZ may cut interest rates in August: Jiahuang

On July 17th, Jin10 Data reported that Royal Bank of Canada (RBC) Capital Markets now expects the Reserve Bank of New Zealand to begin lowering the official cash Intrerest Rate (OCR) in August, as Q2 inflation data showed price pressures easing at a surprising pace. The bank had previously suggested the RBNZ cut rates for the first time in October. RBC expects Q2 labor market data, due out on August 7th, to show further rises in the unemployment rate, which would add to the case for policy easing next month. Additionally, RBC expects the RBNZ to cut rates by 50 basis points in Q4 and hike 50 basis points in Q1 2025, which would leave the OCR stable at 4.25%, below RBC’s previous terminal rate forecast of 4.50%.