Photo: RNZ
The Reserve Bank is widely expected to deliver another interest rate cut this afternoon.
Financial markets expect a 50 basis point cut to the official cash rate, to 4.25 percent, though some are calling for a 75 basis point cut.
A half-percentage point cut would take the official cash rate to its lowest level since November 2022, and would follow an equally large cut last month.
Read more:
- Will this week's OCR cut mean better home loan rates
- The Official Cash Rate is down, but are you up on the impact?
Economists said conditions were right for the Reserve Bank to normalise monetary policy to reflect the return of inflation to its target band. Annual inflation fell to 2.2 percent in the September quarter.
However, borrowers were being warned not to get their hopes up about big retail rate falls with many banks already factoring the drop in.
Wednesday's decision is the last cash rate announcement of the year.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.