Banks Anticipate OCR Cuts Starting November

ASB joins Kiwibank in predicting OCR cuts to begin in November. In its RBNZ Monetary Policy Review preview, ASB notes increasing household strain and a shift in inflation dynamics. Chief economist Nick Tuffley highlights that high interest rates and living costs are pressuring households. While the labor market has been resilient, signs of cost-cutting, slowing wage growth, and job security concerns are emerging.

Tuffley expects inflation indicators to soften, with inflation returning to target by year-end. He warns that maintaining tight monetary policy for too long could harm the economy and employment. ASB anticipates RBNZ will cut the OCR after reviewing the third-quarter CPI and labor market data in October and November. This month’s OCR announcement may provide more insights into inflation risks and the fiscal impact of recent budget measures.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com