ANZ Bank expects RBNZ to cut interest rates by 50 basis points next week

According to Jinshi Data, ANZ Bank said it expects the Reserve Bank of New Zealand to cut interest rates by 50 basis points to 4.25% next week. This is consistent with information in October, economists' forecasts and market pricing.

Data since the October monetary policy review have been mixed, but no data is likely to derail plans. After the meeting, data will determine the direction of policy.

With the official cash rate close to neutral, the baseline expectation is that the RBNZ will slow the pace of easing to a standard 25 basis point rate cut, with rates hitting a low of 3.5 per cent in May next year.