The Reserve Bank of New Zealand recently switched around the time it announces its monetary policy meeting decisions.
To later in the NZ day. Their meeting on May 8 2019, the announcement is due at 0200GMT that date. Plenty coming:
- OCR announcement
- Monetary Policy Statement
- Governor Orr's media conference
And … this is the first decision to be decided by committee, not just by the Gov. alone. Here's how that'll work and a list of the noobs to the committee (by definition they all are):
What to expect? ANZ economists have shared their preview, the main points:
- … RBNZ will leave the OCR at 1.75%. However, we expect a dovish tone, in line with the March OCR Review, and a downward-sloping OCR forecast track implying around 35bp of OCR cuts by the end of the year.
- Domestic data has confirmed the economy is cooling but hardly freezing up. Near-term risks around China's growth - and hence commodity prices - are diminishing. There is no urgency for RBNZ action.
- Nonetheless we are forecasting an OCR cut in August, with two more to follow, as it becomes incontrovertible that capacity pressures are waning meaningfully before core inflation is where it needs to be.
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ps. The kiwi $, daily:
