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
-
More on the RBNZ tomorrow:
RBNZ preview: Decision is whether to cut 25 or 50 basis points