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NZ Set to Keep Rates on Hold

NZ Set to Keep Rates on HoldNZ Set to Keep Rates on Hold

New Zealand’s central bank is set to keep interest rates on hold this week and signal that no monetary tightening is on the cards in the near-term, with inflation subdued and escalating global trade friction clouding the outlook for an already slowing economy, Reuters reported. All 16 economists polled by Reuters expect the Reserve Bank of New Zealand to hold rates at 1.75% at its rate review on Thursday. Markets are on the lookout for any tweak governor Adrian Orr—who took on the job in March with a pledge to simplify the RBNZ’s communication—could make in the central bank’s policy statement. “Orr may decide to simply tweak May’s statement or he may break with tradition and write a completely new statement,” analysts at Capital Economics said in a research note. “We think the former seems most probable” with Orr likely to repeat that rates will stay at current levels for some time, while drawing attention to weaker-than-expected GDP, they said.

 

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