The Reserve Bank of New Zealand meet this week, Wednesday 26 November. Their decision is due at 2pm local time:
- 0100 GMT
- 2000 US Eastern time on Tuesday, November 25
A press conference will follow an hour later.
A 25bp rate cut is widely expected
- to 2.25% (currently 2.5%)
NAB and BNZ expect the decision will weigh on AUD/NZD as the cut from the RBNZ could well be its last.
BNZ sees some scope for the yield gap between Australia and New Zealand to narrow going forward.
- should be supportive for NZD vs. AUD
- won't be a sharp rise for the kiwi as the yield gap is still not in its favour
NAB expect the RBNZ rate cut to be the final in the cycle.
NAB and BNZ analysis via Bloomberg.
