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Speaker 1: The ENZX finished down zero point seven for the day,

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Speaker 1: the A six two hundred currently down one point eight,

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Speaker 1: and the Reserve Bank today cut the official cash rate

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Speaker 1: twenty five basis points. We're now down to three and

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Speaker 1: a half. Remy Morgan's milfit Asset Management with us tonight, Remy,

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Speaker 1: good evening.

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Speaker 2: Hi, Ryan.

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Speaker 1: Very much in line with expectations, this cut, isn't it.

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Speaker 2: Yeah, So today's OCR decision, as you say, was very

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Speaker 2: much expected by the market. With twenty five basis points

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Speaker 2: fully priced in in the minutes today, there was nothing

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Speaker 2: to suggest that they considered a smaller or larger cut

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Speaker 2: at this point in time. But what we have seen

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Speaker 2: over the last few days leading into today's decision was

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Speaker 2: a shift to the market pricing three further cuts from

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Speaker 2: here rather than two previously. And that's largely been in

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Speaker 2: response to the tariff announcement last week and market concerns

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Speaker 2: on global growth.

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Speaker 1: Yeah, and those cuts taking the market prediction to lower

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Speaker 1: than it was at three point one, down to two

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Speaker 1: point seventy five. I think what about the Reserve Bank?

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Speaker 1: Did they consider the teariff policies? Did they mention that

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Speaker 1: in their note?

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Speaker 2: Yeah, So there's still quite a lot of uncertainty over

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Speaker 2: what might actually happen, and this is why the RBNZI

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Speaker 2: didn't really deviate from expectation today. But what most of

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Speaker 2: the committee did consider is that these trade policies do

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Speaker 2: have the potential to move New Zealand inflation lower over

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Speaker 2: the medium term. So what they mentioned in the minutes

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Speaker 2: is that as the picture becomes more clear, they do

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Speaker 2: have the scope to respond as necessary.

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Speaker 1: How could the trade terrorists do you think impact the

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Speaker 1: future decisions?

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Speaker 2: Yeah, so if there is a risk of low inflation,

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Speaker 2: the RBNZI couldn't look to further reduce the ocr so

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Speaker 2: that could mean a faster pace of cuts or potentially

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Speaker 2: a lower CACHE rate at the end of the year.

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Speaker 2: But again this is really going to depend on several

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Speaker 2: factors and how they play out over the coming weeks.

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Speaker 1: What will the watch rbnz'd be watching closely.

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Speaker 2: Yeah, so, first and foremost, any negotiations, revisions, responses to

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Speaker 2: trade policies in the coming weeks, and then from there

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Speaker 2: the rb and ZEBRA need to look at the impact

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Speaker 2: on our key trading partners, our currency, and then the

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Speaker 2: flow through to our domestic economy and inflation.

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Speaker 1: Remy, thank you, for that up that great to have

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Speaker 1: you on, as always, Remy Morgan Milfinaesset Management. For more

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