Westpac: RBNZ to cut rates in August

The Reserve Bank of New Zealand will maintain status quo next week and cuts rates by 25 basis points in August to a new record low of 1.25%, according to Westpac New Zealand chief economist Dominick Stephens.

New Zealand’s gross domestic product (GDP) data released on Thursday showed the economy expanded 0.6% in the first quarter, meeting analysts’ expectations but beating the central bank forecast of 0.4%. 

Even so, analysts believe the central bank would cut rates in the second half of this year to counter a slowdown in the housing market and negative impact of the deteriorating global economic conditions.