RBNZ's risks on a surprise cut - ANZ

Analysts at ANZ explaind that with the NZD soaring back above 74 on a TWI basis, and just 6 points priced in for the RBNZ’s decision this week, some are arguing that now would be an opportune time for the RBNZ to deliver a surprise cut.

Key Quotes:

"The argument goes that with it not expected, a cut would give the RBNZ the most bang for its buck in getting the NZD lower. There is an element of truth in that. But recent history has taught us that any currency impact from monetary policy decisions has largely been temporary.

The same temporary impact can’t be said for the housing market, where the last thing it needs is more stimulus. Does the RBNZ want to take that risk?"