The Reserve Bank of New Zealand is widely expected to cut its cash rate by 25bp on Wednesday, local time
- 2pm
- which is 0200 GMT and 2200 US Eastern time (Tuesday)
- Governor Hawkesby’s press conference will follow an hour later
Earlier previews here:
- Reserve Bank of New Zealand Shadow Board recommends 25bp interest rate cut this week
- Reserve Bank of New Zealand expected to cut its cash rate on May 28, almost unanimous view
Adding in a few more anecdotes, these via a Bloomberg (gated) report:
Westpac:
- “We see the RBNZ’s OCR profile being revised down by around 20 basis points to around 2.9% by the end of 2025”
- “Beyond this meeting, a data-dependent easing bias seems likely.”
ASB:
- “Despite tariff de-escalation, we continue to view the US-China trade war as a net negative to the New Zealand economy and inflation over the medium term.”
- “Pronounced uncertainty means the RBNZ will want optionality on policy moves, so we’d expect cautious, data- and event-dependent commentary on the outlook for monetary policy.”
ANZ:
- “In this kind of environment, there’s plenty of leeway for strategy to play a role”
- “We continue to expect that the RBNZ will ultimately deliver an OCR of 2.5%, but we don’t expect them to signal such an outcome at this stage.”
This article was written by Eamonn Sheridan at www.forexlive.com.
