Economists' view: There is uncertainty whether the Reserve Bank of New Zealand will cut interest rates this week.

avatar
ODAILY
08-12
This article is machine translated
Show original
Odaily Odaily News Agency said that the Reserve Bank of New Zealand will have a key decision this week, and economists and investors are unsure whether the bank will start cutting interest rates or wait for further evidence that inflation is returning to the target. Of the 21 economists surveyed, 12 expect the Reserve Bank of New Zealand to keep interest rates unchanged at 5.5%, but 9 predict that it will start a cycle of rate cuts. Nick Tuffley, chief economist of ASB Bank in Auckland, said that the risk of excessive tightening of monetary policy has become a reality, and the time has come for the Reserve Bank of New Zealand to cut interest rates, but much depends on how much its forecasts have changed. In less than two years, New Zealand's economy may show signs of a third recession, and the degree of slowing inflation has exceeded the central bank's expectations. But some domestic prices are still high. If interest rate cuts are initiated now, it will be one year earlier than the signal just sent by the central bank three months ago. This will be a huge change for the Reserve Bank of New Zealand. (Jinshi)

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments