Does the RBNZ have another surprise up their sleeves?
At their previous policy meeting, the RBNZ surprised markets by choosing to cut interest rates by 50bsp.
Markets were only expecting a 25bsp cut at that meeting.
The RBNZ also struck a very dovish tone at the meeting alluding to the possibility of the bank to utilize negative interest rates if the economy requires it.
This week the markets are expecting the RBNZ to hold rates steady and to keep to the same language they had during their previous meeting.
The question traders should have going into this event is whether there is a possibility for the RBNZ to surprise markets once again?
Check out this week ahead video on how to prepare for this upcoming event.
Highlights of the video:
00:55 – Baseline context for the NZD
03:22 – Baseline expectations for the FOMC meeting
05:29 – Possible sentiment shifts
07:55 – Possible currency pairs to consider
09:14 – Learn more about phase one and two sentiment shifts