The Reserve Bank of New Zealand (RBNZ) is expected to keep rates unchanged but increase the size of the Large Scale Asset Purchase programme, FXStreet’s Ross J. Burland reports.
Key quotes
“After slashing the Cash Rate by 75bps in March while maintaining its stance that the OCR is likely to remain at 0.25% for at least the next 12 months the risk this week is bond purchases increasing from the current $30bn to $60bn.”
“If the RBNZ adopts an explicit interest rate target on bonds, this will be no surprise and have limited impact on the currency.”
“Should there be a surprise in the event with the RBNZ mentioning the possibility of a negative OCR, this is where things could get more interesting and weigh more heavily on the kiwi.”
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