Brief Market Update
The Reserve Bank of New Zealand has lowered the Official Cash Rate (OCR) by 0.25% from 2.00% to 1.75%. This has been expected for quite some time and is fully priced into investment markets and should not be meaningful. Whilst there is the possibility that the OCR could be lowered further in the coming months if needed, we believe that we are at the end of the easing cycle. The domestic economy is growing strongly and the weakness in dairy prices is expected to abate.