The Reserve Bank of New Zealand (RBNZ) is scheduled to unveil the interest rate decision at its regular meeting on January 27, following the 25 basis points cut to a record low on December 10.
The market survey expects the RBNZ to stay on hold at 2.5%, as the economic development along with anxiety on global markets remains a major reason to keep monetary policy loose, and to allow the effect of December’s cut to have its desired effect on the economy, while the weak kiwi allows the nation to import some much needed inflation.
Nevertheless, traders will closely digest comments by RBNZ Governor Graeme Wheeler, as further dovishness in his statement could send the kiwi back to its lowest level since 2009 at $0.6233 seen in September 2015.
Looking back, central bank officials lowered the main rate in December amid ongoing deceleration of global growth, fragile crude oil prices, along with inflation that remained well below the target level.
