Economists lighting the path to OCR cuts

With the Reserve Bank now moving towards an easing stance, it only seems to be a matter of when – not if - the cash rate is cut in 2024.

Mortgage rates have already been drifting lower lately. That news will have been welcomed by existing mortgage holders and aspiring buyers and now Westpac, not as bullish as other banks on monetary policy, has now put its toe further into the water and expects the OCR to be cut in October compared to November previously.

Westpac’s new economic forecasts show the RBNZ starting to temper the degree of restriction from their October Monetary Policy Review by reducing the OCR by 25bp to 5.25%.

It continues to expect a further 25bp cut in November, leaving the OCR at 5% at year end.