{"id":13332,"date":"2025-04-17T05:48:30","date_gmt":"2025-04-16T17:48:30","guid":{"rendered":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=13332"},"modified":"2025-04-17T05:48:30","modified_gmt":"2025-04-16T17:48:30","slug":"anz-forecasts-reserve-bank-will-need-to-cut-ocr-to-support-economic-recovery","status":"publish","type":"post","link":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=13332","title":{"rendered":"ANZ forecasts Reserve Bank will need to cut OCR to support economic recovery"},"content":{"rendered":"<div class=\"photo-captioned photo-captioned-full photo-cntr eight_col \">\n<p class=\"photo-captioned__information\"><span class=\"caption\">ANZ expects further 25 basis point cuts in each of August and October as insurance.\u00a0<\/span><span class=\"credit\">Photo:\u00a0RNZ<\/span><\/p>\n<\/div>\n<ul>\n<li>ANZ pencils in two extra RBNZ rate cuts to a low of 2.5 pct.<\/li>\n<li>Economic recovery underway but piecemeal and likely to take longer.<\/li>\n<li>ANZ downgrades growth and housing, risks to the downside because of global uncertainty.<\/li>\n<li>Official cash rate to stay at new low until rises to 3 pct neutral late 2026.<\/li>\n<\/ul>\n<p>The country&#8217;s biggest bank is forecasting the Reserve Bank will need to\u00a0<a href=\"https:\/\/www.rnz.co.nz\/news\/business\/557641\/reserve-bank-cuts-official-cash-rate-to-3-point-5-percent\">cut the official cash rate (OCR)<\/a>\u00a0deeper for longer to support a stumbling economic recovery.<\/p>\n<p>ANZ Bank was previously picking the OCR cuts to end in July, but now expects further 25 basis point cuts in each of August and October as insurance.<\/p>\n<p>&#8220;The economic recovery, while certainly well underway, is looking a bit more stop-start than our current forecasts imply,&#8221; ANZ chief economist Sharon Zollner said.<\/p>\n<p>She said the current uncertainty surrounding global trade and the effect on world growth were further headwinds for New Zealand&#8217;s recovery.<\/p>\n<p>&#8220;The economy will require a bit more support from monetary policy to ensure that the recovery remains on track &#8211; and accordingly, that medium-term inflation doesn&#8217;t undershoot the target.&#8221;<\/p>\n<p>Zollner said after a period of clarity and stability the RBNZ could then look to return the OCR to a neutral 3 percent &#8211; a level that is neither stimulating the economy nor applying the brakes &#8211; towards the end of 2026.<\/p>\n<p>rnz<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ANZ expects further 25 basis point cuts in each of August and October as insurance.\u00a0Photo:\u00a0RNZ ANZ pencils in two extra RBNZ rate cuts to a low of 2.5 pct. Economic recovery underway but piecemeal and likely to take longer. ANZ downgrades growth and housing, risks to the downside because of global uncertainty. Official cash rate [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":13333,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[222,174],"tags":[],"class_list":["post-13332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-nz-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/13332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13332"}],"version-history":[{"count":1,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/13332\/revisions"}],"predecessor-version":[{"id":13334,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/13332\/revisions\/13334"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/media\/13333"}],"wp:attachment":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}