ChainCatcher news, UBS economist Nic Guesnon said that the New Zealand Reserve Bank is expected to keep the official cash rate unchanged at 5.50% at next week's policy meeting, but this seems to be a very close decision to a rate cut.
He said that the New Zealand Reserve Bank made a major shift to a dovish direction in its policy statement in July, but traders and economists still don't know whether they are considering a rate cut at that meeting. He added that the market expects a 70% chance of a 25 basis point rate cut in August, but preliminary surveys of economists show that the market generally prefers the official cash rate to remain unchanged. (Jinshi)