ING Research discusses its expectations for tonight's RBNZ July's policy meeting.
Overnight, the Reserve Bank of Australia kept rates unchanged whilst keeping the door open for more easing. Ahead of tonight’s Reserve Bank of New Zealand rate announcement, we expect a 25bp rate cut (100% priced in by the market)," ING projects.
"As highlighted by our economics team, the marginal tick-up in inflation and yesterday’s good labour data are unlikely to convince the RBNZ to pause. We expect Governor Orr to keep the door open to more easing (likely emulating the Fed and RBA guidance), which should provide no significant support to the New Zealand dollar," ING adds.