RBNZ meet next week, expected to hold the cash rate steady despite high & sticky inflation

The Reserve Bank of New Zealand meet next week, Wednesday November 29 with the announcement due at 2pm local time

  • 0100 GMT
  • 2000 US Eastern time on Tuesday

The market consensus is that the Bank will hold its cash rate at 5.50% for the fourth consecutive meeting. Despite inflation remaining well above the Bank’s 1-3% target range at 5.6% y/y for the latest reading. 

With such persistent and sticky inflation the RBNZ will remain hawkish.

ANZ:

  • “We expect the Reserve Bank to carefully leave all its
    options open and stress the next move in rates could be up or
    down and they’re in data-dependent mode
  • Given the most recent data, they’re probably a little less
    worried than they were. But there is still a long way to go, and
    the Reserve Bank will be very aware that the job is far from
    done.”

ANZ forecast rates on hold for all of 2024. 

This article was written by Eamonn Sheridan at www.forexlive.com. Source