New Zealand - Don’t expect a change in rates for at least three years

The Reserve Bank of New Zealand will keep interest rates unchanged at 1.75% at the policy meeting on Thursday 8th November, with recent encouraging economic data making a cut less likely. Even so, we think that future economic activity will fall short of the Bank’s projections. We expect the Bank won’t raise rates until late 2021, which would be later than the consensus, markets and the Bank expect.