It’s not the OCR cut but the Monetary Policy Review that counts

The Budget Is unlikely to have much bearing on next week’s RBNZ OCR review and Monetary Policy Statement.

Economists says changes to the RBNZ’s outlook are much more likely to be driven by the global outlook.

Most economists have been locked into expecting a 0.25% OCR cut next week and attention will be on where the RBNZ will set the track and how much further the official cash rate might fall.

ANZ economists expect the tone of the RBNZ’s Monetary Policy Statement to be one of confidence and signal the OCR track to be 15-25bp lower – dipping under the 3% mark.