Thursday's Chorus: OCR slashed as poll shows NZ on the 'wrong track'

The RBNZ surprised many yesterday by cutting the OCR by 50 basis points, and indicating it was open to more cuts in the next four months. Photo: Getty Images

Briefly in the news this morning in Aotearoa’s political economy around housing, poverty and climate:

• The Lead: The Reserve Bank has cut the Official Cash Rate by a ‘bazooka’-sized 50 basis points to 2.5% and has indicated it may cut by more in November and February. Financial markets see the OCR dropping as far as 2.0%. Kiwibank Economist Jarrod Kerr told me last night a sub-2.0% OCR is possible if the economy continues to fail to fire.

• The Sidebar: The monthly poll by National Party’s pollster, Curia, found National’s support falling under 30% for the second time this term and behind Labour for the sixth time this year.

• The Number of the Day: The poll also found Labour Leader Chris Hipkins rising above PM Christopher Luxon for the second time this term. Luxon’s net favourability rating at -14%, fell two points from a month ago, while Hipkins’ net favourability was fell four points to -2%.

• The Detail of the Day: Luxon’s net favourability rating is now worse than Erica Stanford’s on -7%. ACT voters put Stanford’s net favourability at 10.9%. NZ First voters put Stanford at 3.8%, with Luxon on -25.6%.

• The Chart of the Day: Curia’s poll puts the Labour-Green-Te Pāti Māori grouping ahead of the National-ACT-NZ First coalition in Parliamentary terms for the third time this term, if the poll was replicated in Parliament.

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The Lead: An OCR starting with a 1 by 2026?