Christina Leung, Principal Economist at the New Zealand Institute of Economic Research (NZIER) was out with their Monetary Policy Shadow Board’s recommendation on the upcoming Reserve Bank of New Zealand’s (RBNZ) monetary policy decision.
"There is a slightly more divergent view amongst the Shadow Board members relative to the previous round, but the recommendation remains firmly centered on no change to the OCR. Higher global interest rates support a tightening bias, but the heightened uncertainty and low inflation environment indicates little urgency for interest rates to be lifted."
Uncertainty over the effects of new government policies … continues to weigh on business confidence.
Firms are seeing.... demand in their own business … continues to hold up at healthy levels.
Nonetheless, this uncertainty may impact on firms' planning over the longer run, and adds to the case for the Reserve Bank to be cautious as to when it lifts interest rates.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.