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Kiwibank economists are now predicting a 'terminal' Official Cash Rate by next year of 0.75%, but also put some possibility on the rate going to 0.5%
Kiwibank economists are now predicting the Official Cash Rate will go as low as 0.75% by next year, with some possibility it will need to go even lower. The Reserve Bank is widely expected to cut the OCR on Wednesday from the current 1.5% to a new record low of 1.25%. Most economists from the major banks are now anticipating that there will be a follow-up cut later in the year, taking the rate down to 1%. Increasingly there has been chatter that the OCR may need to be dropped even further and go below 1% - but the Kiwibank economists are the first major bank economists to come out and give a hard forecast of this. In ... (full story)