The Reserve Bank of New Zealand has called a press conference for tomorrow morning at 9 o'clock on its decision for the Official Cash Rate. This is a break from normal practice, where OCR decisions in-between monetary policy statements have been announced in press statements. However, the last two intra-MPS announcements have been accompanied by press conferences. The majority of economists are now calling for a 50 basis point cut in the OCR, although as Westpac economists have said, "tactical considerations could make it a much closer call between 25bp and 50bp." Federated Farmers yesterday said it thought there was scope for a 25 bp cut. Interest rate markets are still tossing up between a 25 bp and 50 bp cut. Bernard Hickey will be at the Reserve Bank tomorrow and we have just arranged to provide a live video stream of the 9am press conference on interest.co.nz.
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