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23 Jan 2020
RBNZ is likely to keep the policy rate on hold in 2020 – Standard Chartered
While recently surprising employment data from Australia have starting shunning odds of the Reserve Bank of Australia’s (RBA) rate cut, the Reserve Bank of New Zealand (RBNZ) is another central bank that is likely to be observed closely for monetary policy divergence. Even so, analysts at Standard Chartered anticipate no fireworks in 2020.
Key quotes
“RBNZ is likely to keep the policy rate in 2020 on hold while maintaining an easing bias.”
“Fiscal policy to spur growth in conjunction with already accommodative monetary policy settings”
“We expect GDP growth to remain stable at 2.3% in 2020; services to recover from a lackluster 2019.”