Westpac economists are cautioning that if the Reserve Bank does cut the Official Cash rate there is a chance this could refire the housing market. The economists say in their NZ Weekly Commentary that they are expecting now that the RBNZ will cut the OCR (from the existing 1.75%) when the rate is next reviewed on May 8.
Financial Markets Authority (FMA) CEO Rob Everett has given a withering critique of the Milton Friedman principle of shareholder primacy, saying company boards and executives should “anchor themselves” in what’s good for New Zealand and the communities in which they operate.
There has been a lack of government response internationally to the Global Financial Crisis (GFC), says Kiwibank chief economist Jarrod Kerr, as he highlights the possibility of the Reserve Bank cutting the Official Cash Rate (OCR) below 1% next year.
The clear signal from the RBNZ two weeks ago that the probability had shifted to a greater chance of an interest rate cut in the future from the previous “evenly balanced” monetary policy stance has caused both interest rate market pricing and bank economic forecasters to all duly fall in line and confidently predict two or three cuts to the OCR over the next 12 months.