UBS: New Zealand's central bank is expected to keep interest rates unchanged next week

Nic Guesnon, an economist at UBS, said that the Reserve Bank of New Zealand is expected to keep the official cash rate unchanged at 5.50% at next week's policy meeting, but this decision seems very close to a rate cut. He said that the Reserve Bank of New Zealand made a major shift towards doves in its July policy statement, but traders and economists still do not know whether they considered a rate cut at that meeting. He added that the market expects a 25 basis point rate cut in August with a probability of 70%, but a preliminary survey of economists shows that the market generally tends to keep the official cash rate unchanged. (Jinshi)