Reserve Bank of New Zealand chief economist Conway

• Without future shocks, the OCR will tend towards the neutral interest rate.
• With declining inward migration and weak productivity growth, potential output growth is likely to be modest.
• The long-term nominal neutral interest rate currently lies between 2.5% and 3.5%.
• The Monetary Policy Committee is confident that remaining persistent domestic inflation pressures will abate.
• Easing domestic pricing intentions and a drop in inflation expectations will help open the way for some further easing of the OCR, as signalled in November.

Nothing surprising here, the RBNZ is on a rate cutting path and there are more cuts to come.

This article was written by Eamonn Sheridan at www.forexlive.com.