A lack of consensus at the Reserve Bank on yesterday’s cut to the OCR reflects the global economic uncertainty. 

The Monetary Policy Committee has dropped the cash rate 25-basis points to 3.25%, and now expects to reach a 2.9% low-point in December. 

However, further cuts are uncertain, with the bank adopting a watch and wait approach. 

ASB Chief Economist Nick Tuffley told Ryan Bridge they still believe we’ll get another cut next month, but it’s uncertain how far the Bank will go. 

He says it’s possible we will pause at some point. 

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