FXStreet – In November of last year, the RBNZ has lowered its key interest rate to an all-time low of 1.75%. Since then, she has not changed him, and according to the unanimous opinion of analysts, you will not do so well today, said
Thu Lan Nguyen, A Commerzbank Expert.
Although the RBNZ is expected to draw an overall positive picture for the Inflation. Finally, the inflation rate has returned much faster to the center of the Target range of 1% to 3%, as it had adopted in its monetary policy report in February. So, inflation jumps rate to rise rather than gradually – in the first quarter of this year from 1.3% to 2.2%. Add to that the new Zealand Dollar has depreciated on a trade-weighted Basis since the last meeting in March, even if only moderately. This increases the price of imports, and thus supporting the positive inflation trend.
Overall, the RBNZ will emphasize, however, that the monetary policy will remain for some time to be expansive, and the numerous international risks (e.g., China). In addition, you will want to avoid interest rate hike speculation fuelling, then the NZD could again upgrade.
** FXStreet News Editorial, FXStreet**