New Zealand - Preparing the ground for rate cuts

We expect that the Reserve Bank of New Zealand (RBNZ) will use the policy meeting scheduled for Thursday 11^th June and the publication of the accompanying Monetary Policy Statement to further prepare the ground for a rate cut in either July or September. There is even a slim chance that the Bank decides to cut rates this month, from 3.50% to 3.25%. Either way, the chances that rates will be 3.0% by December, as we have been forecasting since early this year, are increasing.