RBNZ's dovish tilt will depend on inflation data

RBNZ Governor Adrian Orr. (Image: BusinessDesk)

Thu, 11 Jul 2024

The market is now predicting a 60% chance of a rate cut in August after the central bank took a more dovish stance, but the tide may shift if next week’s inflation data is higher than expected. On Wednesday, the Reserve Bank kept rates on hold at 5.5% but said restrictive monetary policy has “significantly reduced consumer price inflation”.There was no further talk of rate hikes in the record of meeting and the monetary policy committee is now “confident” rates will return to the 1% to 3% target band over the...

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