A preview of the Reserve Bank of New Zealand monetary policy announcement due on Thursday (23 July 2015) NZ time

  • Which is 2100GMT Wednesday (22 July 2015)

ANZ NZ are blunt in their assessment of what's going to come from the RBNZ (bolding mine):

  • Little dispute that the RBNZ will cut
  • Will maintain a clear easing bias

ANZ cite:

  • Inflation remains "MIA"
  • Growth is sub-trend
  • Outlook for terms of trade is shaping up at least 10% weaker than the RBNZ was projecting in June
  • Global uncertainty remains high

On the NZD ....

  • We wouldn't be surprised to see the RBNZ tweak its NZD language. Words like "unjustified" or "unsustainable" (or variations of them) may be dropped.
  • NZD is still overvalued, but the degree of deviation is no longer stark

ANZ expect more easing after tomorrow, too:

  • Our assessment is that recent developments are likely worth 25-50bps of additional policy easing on top of what the RBNZ was already flagging

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More on the RBNZ tomorrow:

RBNZ preview: Decision is whether to cut 25 or 50 basis points