BNZ preview the Reserve Bank of New Zealand meeting. They have a detailed previews, headlined ( I suspect very accurately) with ‘unexciting’.
- the market not expecting too many surprises
- The RBNZ is expected to leave its policy settings unchanged, including its cash rate at 0.25% and its QE programme limit (currently set at “up to” $60b)
- We expect the RBNZ to acknowledge the not-so-horrible economic indicators of late, but remain very cautious about the economic outlook
And, just a little more:
- We have certainly become more optimistic about the outlook and New Zealand Treasury has acknowledged domestic activity is stronger than it had assumed. So we see no reason why the RBNZ won’t be adjusting its assessment accordingly.
- With growth surprising to the upside, it would be reasonable to think the RBNZ will also be less pessimistic about the state of the labour market, which is important in the context of its dual objective.
- The other component of that dual objective is, of course, the path of CPI inflation. That path is unequivocally down but, again, there is nothing to suggest it is more down than previously anticipated.
Reserve Bank of New Zealand policy meeting is on 24 June
- decision announced at 0200GMT