RBNZ to stick with a 'wait-and-see' policy stance - ING

In the view of Petr Krpata, an analyst with ING Bank, the Reserve Bank of New Zealand (RBNZ) is expected to leave its Official Cash Rate (OCR) at a record low of 1.75% later on Wednesday.

Key Quotes:

"We see some macro evidence to support a slightly more hawkish tone, but softer 2Q inflation and concerns over fuelling a strong NZD will likely see the RBNZ stick with a 'wait-and-see' policy stance.”

“While NZ rates have been ticking lower in anticipation of a more neutral tone, there is a tail risk that the kiwi could come under additional pressure from ramped up RBNZ jawboning."