With the second quarter (Q2) employment data and monetary policy meeting by the Reserve Bank of New Zealand (RBNZ) up for publishing during the week, Australia and New Zealand Banking Group (ANZ) draws market focus towards the key catalysts for the New Zealand Dollar (NZD). The bank anticipates 0.25% cut in the Official Cash Rate (OCR) to the record low of 1.25% with signals favoring further rate cuts in future.
Key quotes
- The global growth outlook has worsened, overseas central banks have eased policy (putting upward pressure on the NZD), commodity prices have softened, the outlook for domestic growth has weakened, unemployment looks likely to increase, and inflation expectations are at risk of slipping further.
- The RBNZ’s GDP growth forecasts look due for a trim at the Monetary Policy Statement on 7 August, along with the OCR.
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