The ING Economists They expect a 50 basis point rise in the RBNZ, which could boost the New Zealand dollar, but moderate risks have risen.
Beware of the risk of cyclone
“We are in line with the consensus that calls for a 50 basis point rate hike.”
“However, there is a key risk to our view: the impact of the cyclone in New Zealand. This has triggered growing speculation that the RBNZ will only rise 25 basis points or even pause, and is likely behind the NZD decline. /USD to 0.6200″. It is true that this downside risk has now materialized, but we stand firm in our view of a 50 basis point rally for the RBNZ, and we believe this will support the New Zealand dollar tomorrow.”
“However, we think this may be one of the last times the RBNZ has a direct positive impact on the NZD as many factors suggest a moderate pivot is in store soon.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
