RBNZ Rate Cut Looks Likely

Xe Corporate APAC

May 3, 2019 2 min read

The Reserve Bank of New Zealand looks set to cut their Official Cash Rate when they review interest rates next week.

Soft inflation data combined with weak underlying jobs data make it highly likely that they will cut the Cash Rate from its current 1.75% to 1.50%.

In their previous interest rate reviews, the RBNZ has signalled that if growth fell and inflation remained low then they would cut rates.

The economy looks to have cooled more than they had anticipated with the Auckland housing market in particular slowing sharply.

A lower cash rate should lead to a lower NZ Dollar which will help boost exports and offset the slowdown in the domestic economy.

The RBNZ announcement is at 2.00pm NZT on Wed 8th of May.

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