The Reserve Bank of New Zealand will hold its key interest rate at 5.50% on Wednesday according to all analysts polled by Reuters.
- rates are set to stay on hold through end-September, according to the median view.
- ANZ, ASB, and Westpac expect no change until next year
- Kiwibank and Bank New Zealand see the first reduction in Q4 this year
- "We're agonizing over the start date, whether it's November or February, but the direction is pretty clear. Rates will be lower into next year and that'll help with the rebalancing of the economy and the rebound in asset markets, particularly housing," said Jarrod Kerr, chief economist at Kiwibank.
Still-high inflation, 4% in Q1, well above the Bank's 1-3% target, is keeping the RBNZ from cutting:
Earlier previews here:
- Reserve Bank of New Zealand expected on hold at its May 2024 meeting - preview
- Reserve Bank of New Zealand monetary policy meeting preview - on hold expected
2pm New Zealand time on Wednesday is 0200 GMT
- and 10pm Tuesday May 21 US Eastern time
