While leaving interest rates at 1.75% at the policy meeting on Thursday 9th August, the Reserve Bank of New Zealand will probably acknowledge the recent softening in activity by revising down the GDP growth forecasts published in the accompanying Monetary Policy Statement and perhaps even pushing back the timing of when it expects to raise interest rates. Our view that rates won’t be raised until mid-2020 assumes a later lift-off than the markets and explains why we think the dollar may weaken from US$0.68 now to US$0.65 this year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services