An unchanged cash rate is expected from the RBNZ on 12 February 2020 - statement due at 0100GMT
- Will issue their latest Monetary Policy Statement (MPS)
- Governor Orr press conference follows at 0200GMT
Earlier:
- RBNZ monetary policy decision due Wednesday 12 February 2020 - preview
- What's driving the NZD ahead of the RBNZ?
- "Shadow Board" recommends the RBNZ hold the OCR unchanged this week
What to watch for despite the 'on hold' expectation, this snippet via ASB:
- We expect the RBNZ to hold the OCR at 1.00% and reiterate that developments do not warrant a change in the monetary policy outlook, but to signal preparedness to lower the OCR if needed.
- The coronavirus outbreak has increased uncertainty over the policy outlook. At this point we doubt that the RBNZ will incorporate the potential impacts of the outbreak into its central published forecasts and OCR track. The outbreak, however, will influence the RBNZ's characterisation of risks.
- We still expect the RBNZ to hold out the prospect of further policy stimulus and have pencilled in a 25bp cut in 2020. Provided the economy smoothly navigates various headwinds, however, 1% may be the floor in the OCR this cycle.
