RBNZ interest rate decision eyed – UOB

FXStreet (Guatemala) – Analysts at UOB Group noted that all eyes are on the RBNZ.

Key Quotes:

“The decision is due early Thursday at 4.00am Singapore time. RBNZ Governor Graeme Wheeler then speaks at a press conference at 4.05am and four hours later, will head on over to parliament to front a committee.

“We expect a 25bps cut in the official cash rate (OCR) to 2.50%, largely on the back of the weaker outlook for inflation, dairy and jobs, alongside a higher New Zealand dollar.

The risk to our call will be that the RBNZ might want to extend its pause to gather more information on the economy. Even if it chooses to stay pat this, we believe a rate cut would be needed at some point.”

Analysts at UOB Group noted that all eyes are on the RBNZ.

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