Next week (April 14) will bring the next RBNZ monetary policy review
The announcement is due at 0200 GMT on April 14
- there will be no update to forecasts
- there will be no press conference
No change to the cash rate is expected (currently at 0.25%).
- Similarly, on other policy settings, no change is expected: FLP and LSAP programmes are most likely to remain largely untouched
The RBNZ will oc course be cognizant of the recent lack of mentum in economic indicators, but the Bank is forecasting the economy to come off its bounce-back pace, and that there is much work to be done for the economy ahead.
The data today from ANZ (New Zealand April (preliminary) Business Confidence -8.4 (prior -4.1) & Activity Outlook 16.4 (prior 16.6)) showed inflation pressure building. The Bank will also be paying attention to recent government policy change aimed at slowing the breakneck pace of rising housing prices.