The Reserve Bank reduced the OCR to 1.50% at today’s Monetary Policy Statement. The statement was bang in line with our expectations. The press release consisted of a justification for cutting the OCR – low inflation, slowing domestic economy, and global risks. There was nothing at all in the press release to indicate what the RBNZ is thinking about future OCR moves. The RBNZ forecasts the OCR to drop to 1.4% by March 2020 – this is roughly equivalent to half a further cut. This allows for the possibility of further OCR cuts, but does not commit the RBNZ. Our interpretation is that the RBNZ is genuinely open minded ... (full story)