Via Reuters poll of what to expect from the Reserve Bank of New Zealand (monetary policy decision due at 0200GMT on June 26)
POLL-New Zealand c.bank to hold steady this week but resume easing in Q3 * Economists expect no change in Wednesday's meet - Reuters poll * Poll tips cut before year-end due to global risks, low inflation * Markets almost fully priced for rate cut at Aug meeting * RBNZ policy meeting on Wednesday --
Central expectation is that the RBNZ expected to hold its cash rate unchanged - expected by all 15 economists polled by Reuters
- most economists predicting a second cut at the next review (August)
- market pricing is around 30% for a cut
Array of reasons for more easing ahead:
- global risks
- low inflation
- further easing to support growth
- slowing external demand
- global pressure from China - U.S. trade war
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RBNZ cut is cash rate target at its prior meeting to 1.5% (from 1.75%)
It was the first cut in 2 years
