The Reserve Bank of New Zealand (RBNZ) will hold its official cash rate at a record low of 1% Wednesday, according to 24 economists surveyed by Bloomberg.
Governor Orr, however, is likely to open the doors for further rate cuts to cushion the impact of coronavirus.
“This is a highly fluid situation and estimated impacts are extremely uncertain. We expect the RBNZ will signal that they are staying on the sidelines for now, but are watching developments closely and will respond as required if need be” said Sharon Zollner, chief economist at ANZ Bank New Zealand in Auckland, according to Bloomberg report.
The market pricing for a rate cut later this year has risen to more than 50% from about 40% seen at the start of 2020.
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