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According to analysts at ANZ, the RBNZ Monetary Policy Statement is this week’s headline act.

Key Quotes

“Since November, the labour market has flat-lined and the growth outlook has a duller pitch, though domestic inflation has been a little stronger. Global data has struck a softer note and risks have increased sharply, with central banks turning more dovish in concert.”

“We expect the RBNZ will join the chorus this week, employing a similarly dovish tone that echoes the tenor of other central banks and market pricing, which has moved to price in a good chance of a rate cut, reflecting the changing balance of risks. That said, a dovish stance so soon from the RBNZ is not a necessary ingredient of our November cut call.”

“The data and market pricing may well strike higher and lower notes, but we think the case for more monetary stimulus will become evident in time.”