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May RBNZ preview: Not enough reasons to turn dovish
The Reserve Bank of New Zealand is widely expected to maintain the official cash rate (OCR) at 5.50% at the upcoming 22 May meeting, so the focus will be on new economic projections and forward-looking language. The RBNZ differs from other developed central banks in that it announces policy less frequently and can only rely on quarterly inflation and jobs data, which can ultimately lead to rapid changes in policy direction from the RBNZ. However, the latest indications from the New Zealand economy and modest expectations for Fed easing (50bp by year-end) suggest the RBNZ should be in no rush to pivot to dovish ... (full story)