Reserve Bank of New Zealand monetary policy meeting decision coming up.
Earlier previews:
- Reserve Bank of New Zealand interest rate meeting today - preview (& NZD scenarios)
- RBNZ monetary policy meeting on Wednesday 24 June - preview
- RBNZ monetary policy meeting this week, preview (spoiler: "unexciting")
While we count down, RBC thoughts:
- RBNZ is universally expected to keep rates at 0.25%
- Since the May meeting, activity data have been mixed, but the more important news RBNZ will have to take on board is the advanced state of reopening of the economy - NZ now has the loosest constraints on activity in G10, according to the Oxford COVID-19 Government Response Tracker
- We still think markets overprice the risk of negative rates in NZ ... if Governor Orr plays down this risk, NZD should outperform
