Both economists and the wholesale interest rates market are convinced the Reserve Bank will cut its Official Cash Rate (OCR) again at its next review on Thursday.
Tuesday, July 22nd 2003, 4:23AM
by The Landlord
The central bank has cut the OCR twice already since late April from 5.75% to 5.25%.
A Reuters poll of 15 economists shows all are expecting a cut with a 70% chance of it being 25 basis points and a 20% chance of it being 50 points. Eight of them expect a further rate cut at the next monetary policy statement on 4 September.
The market has already anticipated a 25 point cut this week with the 90-day bank bills trading at 5.07% on Friday. It is less certain about future cuts with both the September and December 90-day bank bill futures implying a 4.95% physical rate by those dates.
