Research group Capital Economics expected the Reserve Bank of Australia (RBA) to ultimately slash rates to 2.85%.
“Most importantly, the bank endorsed market expectations of further loosening,” Capital Economics said in a note.
The RBA reiterated its view that it “remains cautious about the outlook”, which suggests that it will keep easing only once per quarter.
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“We’ve therefore pencilled in the next rate cut at the bank’s November meeting,” Capital Economics said.
The Reserve Bank of New Zealand is due to make its Official Cash Rate decision on August 20.
Market expectations are for a quarter-point cut to 3.0%.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
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