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Westpac expects gradual interest adjustment by RBNZ next year
Westpac said on Tuesday eased its expectation of deeper cuts in interest rate saying it was now expecting the Reserve Bank of New Zealand (RBNZ) to cut rates twice next year to -0.25% by August. The bank had previously forecast three cuts beginning in April, and the rates to reach -0.5% by August. The prospects of deeper interest rate cuts looked less likely after New Zealand’s central bank said last week that it would re-impose mortgage curbs and work with the government on fixing a housing bubble. “We now expect the RBNZ will choose a slower return to the inflation and employment targets, via more gradual ... (full story)