NZ central bank to retain rates, dovish view on virus-driven turbulence

22.06.2020 - Kulakov Vladimir
NZ central bank to retain rates, dovish view on virus-driven turbulence

New Zealand’s central bank is expected to keep rates unmoved at its policy meeting on Wednesday. However, it projects a cautious tone as fears of a second wave of COVID-19 infections dampened outlook and increased economic uncertainty.

All economists surveyed by Reuters expected the Reserve Bank of New Zealand to maintain the official cash rate at 0.25% for the rest of the year. Some of them anticipate rates plunging to zero and reaching negative territory in 2021.

In May, the central bank pledged to hold rates at 0.25% until early 2021, working with commercial banks to brace for negative rates in the future. In addition to this, the country is currently suffering from its sharpest downturn after its GDP plunged 1.6% in the March quarter. Expectations were dim as it is likely to drop further in the next three months.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue
×

Help with deposit?