We expect the recent string of soft economic data will be enough for the Reserve Bank of New Zealand (RBNZ) to cut rates to 1.50% when it meets next week on Wednesday 8th May. Since the RBNZ shifted to an easing bias in March the economic data have remained generally subdued, supporting the case for a rate cut. And we suspect that a rising unemployment rate and subdued underlying inflation in 2019 will force the Bank to cut rates again in November.
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