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OCR will fall to 0.75%: Kiwibank

Monday 5th of August 2019

Until now, Kiwibank economists predicted rates would fall just one more time this year, to 1.25%, at this month’s MPS.

However, “global uncertainties”, the Reserve Bank of Australia’s rate cut drive, and a “softening domestic economy” have made economists, including Jeremy Couchman, change their mind.

They now give a “60%-70%” probability of the Official Cash Rate falling to 0.75%.

In their latest market outlook, the economists say cuts to 0.75% are “likely”, amid heightened global uncertainties.

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