ASB, Westpac, ANZ, BNZ now see OCR cut 100 bps on Dec 4

Now it's bound to happen... The economists for all four major banks, ASB, ANZ-National, BNZ and Westpac, are forecasting the Reserve Bank of New Zealand will cut the Official Cash Rate by 100 bps to 5.5% on December 4. Signs of weaker global growth and a recession-bound consumer and housing sector in New Zealand have convinced economists that a sharply lower inflationary outlook gives the central bank room to cut rates further and faster than previous expectations. ANZ National and Westpac are now forecasting OCR troughs of 4% next year, while BNZ sees a trough of 4.5% next year and ASB sees a 5% trough.