The Reserve Bank of New Zealand monetary policy decision for June 2016 is due at 0200GMT (on the 26th)
i.e. soon!
Earlier:
What's priced in for the RBNZ decision tomorrow?
- NZD traders - RBNZ monetary policy announcement due tomorrow - preview
- RBNZ monetary policy meeting preview - BNZ says cash rate on hold
- NZD traders - RBNZ preview - poll says on hold
- NZIER says RBNZ cash rate should remain on hold this week
Some preview thoughts via Rabobank:
- market is mostly priced for another RBNZ rate cut in August
- placing around a 20% chance of a move (today) - All of the respondents in the Bloomberg survey expect the RBNZ to leave rates unchanged …. would allow policymakers the opportunity of examining another 6 weeks of fresh economic data in addition to a revised set of internal forecasts ahead of the next policy meeting in August.
a rate cut (today):
- would unlikely be a complete surprise
- would offer the RBNZ an opportunity to leverage on the element of surprise
movement in the NZD since May has most likely disappointed policymakers
- softer NZD would clearly help support exports
- in addition to helping the RBNZ support price pressures
"The easing bias of most G10 central banks will have introduced a currency wars theme into central bank thinking and some commentators see this as a reason for the RBNZ to announce a 'surprise' rate cut at tomorrow's policy meeting. While the NZD could find support on the announcement of steady policy tomorrow, we expect such a move to be limited by dovish rhetoric from the central bank. We remain bearish on the outlook for NZD/USD and look for a move towards 0.63 on a 12 month view."
(bolding above is mine)
