The Reserve Bank of New Zealand (RBNZ) is odds on to buck the recent global trend by leaving its cash rate on hold at 3.5% in the announcement scheduled for Thursday 12th March. But if we are right in expecting both GDP growth and inflation to fall short of the RBNZ’s projections this year, then the RBNZ could be a late addition to the cluster of global central banks currently loosening policy. By the end of the year, we expect the cash rate will have been reduced to 3.0%.
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