RBA & RBNZ July Policy Rate Meetings

At their respective policy rate meetings on the 7th and 8th of July, both the RBA and the RBNZ opted to keep their Official Cash Rates unchanged. For the RBA this meant leaving the cash rate at 3.85% despite 27/32 surveyed economists (including RaboResearch) predicting a 25bps cut and overnight index swap (OIS) futures being fully-priced for a cut. For the RBNZ the OCR remains at 3.25%. 19/23 surveyed economists had predicted this outcome (including RaboResearch) while the OIS futures market implied just a 13% probability of a cut leading in to the meeting.