Low consumer-price inflation and a resurgent New Zealand dollar will make Thursday's Official Cash Rate (OCR) decision a no-brainer for the Reserve Bank of New Zealand (RBNZ), but Governor Graeme Wheeler will need to do more than just cut the cash rate to send the right signals to markets on Thursday. A 25 basis points rate cut to the OCR has already been fully priced in by markets, with the RBNZ's economic update on July 21 all but confirming more easing is needed to get inflation back on track and contain the New Zealand dollar. So, on Thursday, the benchmark cash rate will almost certainly be cut to a new record-low 2.0%, but ... (Read the full story)
