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The first meeting of the RBNZ for the year is likely to have extra expectations.
This is one of the four “live” meetings, accompanied by a monetary policy statement and followed by a press conference. Typically, if the bank is going to take action, it prefers to do so in a meeting like this.
However, the consensus among analysts is that it’s unlikely that the RBNZ will cut rates.
There are several reasons for this that have important Forex implications.
The primary reason being cited is the expectation of an increase in inflation. This had already beat expectations in the last quarter and we can expect it to be even higher during the current quarter.
But, what about the coronavirus?
We would expect the news that has been dominating the Asian markets to have a negative impact on the Kiwi economy. And we would expect the Reserve Bank to step in to help.
But, maintaining currency stability an...
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