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RBNZ Seen Pushing Back Against Bets on Early Interest-Rate Cuts
New Zealand’s central bank may this week push back against investor bets that interest-rate cuts are coming, even though the economy has slumped into a double-dip recession. The Reserve Bank will keep the Official Cash Rate at 5.5% for a sixth straight meeting Wednesday in Wellington, according to all 15 economists in a Bloomberg News survey. They expect policymakers to stress the need for rates to stay restrictive for a prolonged period to tame inflation. “Markets have taken a more aggressive view on the timing and extent of OCR cuts. Those expectations will be disappointed this time around,” said Kelly ... (full story)