NZD traders - RBNZ preview - poll says on hold

Author: Eamonn Sheridan | Category: Central Banks

Via Reuters poll of what to expect from the Reserve Bank of New Zealand  (monetary policy decision due at 0200GMT on June 26)

POLL-New Zealand to hold steady this week but resume easing in Q3 * Economists expect no change in Wednesday's meet - Reuters poll * Poll tips cut before year-end due to global risks, low inflation * Markets almost fully priced for rate cut at Aug meeting * RBNZ policy meeting on Wednesday -- 

Central expectation is that the RBNZ expected to hold its cash rate unchanged -  expected by all 15 economists polled by Reuters
  • most economists predicting a second cut at the next review (August)
  • market pricing is around 30% for a cut

Array of reasons for more easing ahead:
  • global risks
  • low inflation
  • further easing to support growth
  • slowing external demand
  • global pressure from China - U.S. trade war
RBNZ cut is cash rate target at its prior meeting to 1.5% (from 1.75%)
It was the first cut in 2 years

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