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According to the latest Reuters poll, a majority of the economists believe that the Reserve Bank of New Zealand (RBNZ) will keep the Official Cash Rate (OCR) on hold at its monetary policy meeting due later this week.

Key Findings:

“16 economists unanimously predicted that in its final policy review for the year the Reserve Bank of New Zealand (RBNZ) will hold the official cash rate (OCR) at 1.75 percent, where it has remained since November 2016.

Two economists expect the RBNZ to hike rates in the third quarter of 2019, and four predicted an increase in the final quarter. The rest expect no change in policy for next year.

Analysts say the RBNZ can take some comfort from surprisingly strong second quarter GDP growth. Yet, while inflation in the third quarter also accelerated closer to central bank’s target mid-point of 2.0 percent, some economists described this as a red herring.”