Expect three more OCR cuts – ANZ

The Reserve Bank slashed the OCR by 50 basis points to the historic low of 1.0% in August and many economists expect that it will cut it at least once more in this cycle.

But ANZ chief economist Sharon Zollner says they now expect 25 basis point OCR cuts in November, February and May, which would take the OCR to 0.25%.

They would not rule out another cut as soon as September, but it is not their central view, she says.

“The forecast 25 basis point May cut is a placeholder for the impact of the Reserve Bank’s capital proposals, the details of which are as yet unknown.”