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RBNZ: Steady as she goes
RBNZ is to announce to its interest rate tonight at 20:00 (GMT) and is expected to remain on hold at +1.75%. The market has priced in the probability to remain on hold at 99.88% and the financial data also support the case as the inflation is currently at +1.6%, below RBNZ’s target range of 2-3%. Focus should shift to the accompanying statement and specifically to the inflation rate which has recently dropped. Another point to keep a look out for, would be the recent strengthening of the NZD. Overall, the statement could have a positive economic outlook, however due to the factors mentioned before we see the case ... (full story)