The Netherlands International: The Reserve Bank of New Zealand may wait for the Federal Reserve to act first.
The Reserve Bank of New Zealand will announce its interest rate decision on Wednesday. ING expects the outcome of this meeting to be a very close decision, with the market divided on whether the bank will cut rates by 25 basis points or keep rates unchanged. However, ING leans towards the view that, due to lingering concerns about inflation, the Reserve Bank of New Zealand may still be inclined to wait for the Federal Reserve to take action first, and may cut rates by 50 basis points in October. Another possibility is a "hawkish" rate cut. (Gold Ten)
