RBNZ likely to hold fire this week, November rate hike on the cards – Reuters poll

The Reserve Bank of New Zealand (RBNZ) is expected to announce no changes to its monetary policy this week but could embark upon its tightening journey later this year, the latest Reuters poll of economists showed on Monday.

Key takeaways

“The Reserve Bank of New Zealand (RBNZ) to hold the official cash rate (OCR) on Wednesday at a record low of 0.25%, where it has been since a pandemic-driven cut in March last year.”

“At least a quarter of them now expect a rate hike later this year, a change in sentiment sparked a business survey last week that indicated a sharp improvement in outlook while also flagging rising capacity pressures and inflation.”

“RBNZ may drop a reference to "considerable time and patience" from its statement this week, which would be a key change.”

• NZD/USD starts of flat, better bid following risk-on Friday