The latest Reuters poll of 13 economists showed that all of them believe the Reserve Bank of New Zealand (RBNZ) will keep the key rates on-hold but may expand the QE programme at its monetary policy meeting next week.
“Economists polled by Reuters predict the official cash rate (OCR) will remain unchanged at 0.25% this year, and just three see rates dropping into negative territory in 2021.
Markets expect the Reserve Bank of New Zealand (RBNZ) to stick to a dovish tone by expanding quantitative easing (QE) beyond the current NZ$60 billion ($40.13 billion) and keep alternative monetary policy tools, including negative rates, firmly on the table.
But unknowns remain, with the borders still shut, hurting New Zealand’s large tourism industry, and fears of a second wave of cases looming. The government expects the unemployment rate to rise in the coming months.”