The RBNZ Governor’s comments in a media interview last week were in line with our initial read of the March OCR review. Governor Orr noted that the March statement was meant to reflect that the balance of risks has shifted to the downside. But he emphasised that the decision in May is by no means settled. On balance, we still think that the odds are in favour of a rate cut in May. The RBNZ has highlighted concerns about the slowing global economy in particular – a point that was underscored last week when the IMF further downgraded its world growth forecasts. We’re more optimistic on global growth than the market ... (full story)