Shadow Board recommends an OCR cut of 25 basis points in April

The NZIER Monetary Policy Shadow Board recommends the Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate (OCR) by 25 basis points to 3.50 percent in the upcoming April Monetary Policy Review. Most Shadow Board members agreed that a 25 basis-point cut is justified in April as inflation is contained and activity in the New Zealand economy remains soft. Two members recommended no OCR cut in April as they viewed that it is now appropriate for the RBNZ to start assessing the impacts of the cuts it has done to date, especially given the global uncertainties.