RBNZ takes a breather. What happens next?
Policymakers around the globe are still grappling with trade tariffs and the inflationary implications. High uncertainty has forced central banks, from Wellington to Washington, into a wait and see mode. But the RBNZ's bias, rightly remains tilted toward further easing.
We continue to advocate for a stimulatory (helpful) cash rate of 2.5%. From our stalled housing market recovery, to plummeting net migration and contracting manufacturing activity, signs of weakness are clear. Weakness, which is in itself, disinflationary.
Modal to play video
All content is general commentary, research and information only and isn’t financial or investment advice. This information doesn’t take into account your objectives, financial situation or needs, and its contents shouldn’t be relied on or used as a basis for entering into any products described in it. The views expressed are those of the authors and are based on information reasonably believed but not warranted to be or remain correct. Any views or information, while given in good faith, aren’t necessarily the views of Kiwibank Limited and are given with an express disclaimer of responsibility. Except where contrary to law, Kiwibank and its related entities aren’t liable for the information and no right of action shall arise or can be taken against any of the authors, Kiwibank Limited or its employees either directly or indirectly as a result of any views expressed from this information.