Although the Reserve Bank of New Zealand (RBNZ) is widely anticipated to keep the benchmark interest rate at 2.50% in July, the fresh batch of central bank rhetoric may heighten the appeal of the New Zealand dollar should Governor Graeme Wheeler layout a more hawkish tone for monetary policy. Indeed, the central bank head may highlight a greater risk for an asset bubble as the rebuilding effort from the Christchurch earthquake boosts economic activity, and the RBNZ may show a greater willingness to start normalizing monetary policy as households and businesses continue to take advantage of record-low borrowing costs. (full story)