NZ: Macro-prudential step increases the risk of a rate cut in August meet - BBH

Research Team at BBH, notes that the New Zealand announced new lending limits on property purchases, which frees up monetary policy that can be used to support the economy.

Key Quotes

“The new measures (including a 40% deposit on new purchases) go into effect 1 September.  Investors understand that this macro-prudential step increases the risk of a rate cut (from about 40% a week ago to around 75% now) at the August 11 RBNZ meeting.”