The Reserve Bank of New Zealand meets at 0200 GMT on Wednesday, which is 2200 EST on Tuesday evening.
Previous Previews:
- RBNZ Monetary Policy Meeting – Reuters poll inconclusive, 19 say hold, 12 say 25bp cut
- ANZ expects the Reserve Bank of New Zealand to hold interest rates steady next week, hinting at rate cuts later in the year
- NZD traders – Westpac expects the Reserve Bank of New Zealand to cut interest rates by 25 basis points in October and November 2024
- New Zealand – RBNZ board split on rate cut
Via BNZ, Frank Opinions:
- Easing is ‘already overdue’, say National Bank of New Zealand economists
- Economy ‘collapses’ amid tough conditions, declining immigration and government cuts
- Recent data shows manufacturing/services PMIs at GFC levels, retail spending down, job postings down
- Inflation ‘behaving normally’ now – June CPI comes in 0.3% below RBNZ forecast
- The Bank of New Zealand expects a 25 basis point rate cut in August, followed by successive cuts to a record low of 2.75%.
- He warns that delay could lead to “unnecessary volatility in output and interest rates.”
- Stock market rates more aggressive – 100 basis point cuts by November
- The Reserve Bank of New Zealand is expected to remove tightening bias, deliver a first major cut.
- But he warns that the RBNZ’s “tendency to surprise” creates uncertainty.
Key takeaways from this report: NBNZ sees risks to delay rather than early action. Market pricing appears overly aggressive in the near term.
This article was written by Eamonn Sheridan on www.forexlive.com.