Shift To Dovish Monetary Policy In New Zealand Unlikely Before Q4 2024
Country Risk / New Zealand / Wed 22 May, 2024
Key View
- We anticipate that the Reserve Bank of New Zealand (RBNZ) will lower the policy rate by 50 basis points (bps) in 2024, starting in Q424.
- Inflationary pressures are showing signs of easing. However, we believe the RBNZ will want to see inflation closer to its 1.0-3.0% target before starting its loosening cycle.
- The risks to our policy rate