Sizeable OCR cut expected in February

Westpac and Kiwibank economists think it is more likely than not the central bank will make a drop of this magnitude if the economy and financial conditions evolve in line with its expectations.  

Westpac chief economist Kelly Eckhold says after that, uncertainty around the OCR outlook is higher and the easing cycle will be over by mid-year, with the OCR still troughing at 3.5%.

Kiwibank’s view has been tweaked, a little.

Chief economist Jarrod Kerr says yesterday’s move to a 4.25% OCR was just the tip of the iceberg.