The Reserve Bank of New Zealand meet this week, no change in rates is expected but another cut is seen in November.
Yesterday I posted a couple of bank views, along these lines:
- RBNZ meet this week - seen on hold (that's BNZ)
- Another NZ bank view on the RBNZ meeting this week - on hold (Westpac)
Tim Toohey, chief economist at Goldman Sachs Australia, says yep, no rate cut this week, but none right through 2017. He previously saw 2 further cuts ahead.
Toohey says the New Zealand economy is "too strong to justify further rate cuts".
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The strong NZ economic data indeed continues, the concern for the RBNZ is too-low inflation. That's what is prompting the thoughts they'll cut again (market is pricing in around 55% probability for a November cut)
