The RBNZ steps up to bat later today as markets will be watching to see how the bank sees the current and future outlook of the NZD economy and most importantly whether they will provide forward guidance as to how they plan to tackle an every worsening global economy and its effect on the NZD economy.
Markets have largely predicted a rate cut to 2% from the current 2.25% as the RBNZ looks to stimulate growth and should result in a depreciation of the Kiwi but as we have seen lately with the Australian rate cut, markets are becoming less sensitive to them and we might see an appreciation of the kiwi should the monetary policy and statement be more hawkish than expected.
Today’s key economic data:
- JOLTS Job Openings expected at 5.52M
- Crude Oil Inventories expected at -1.3M
- Official Cash Rate expected at 2% from 2.25%
- RBNZ Rate Statement
- RBNZ Monetary Policy Statement
- RBNZ Press Conference