Is the Reserve Bank of New Zealand about to cut rates in August? Expert analysts weigh in on the possibility of a rate cut and the potential impact on the NZD/USD currency pair. With the RBNZ showing a dovish stance in July, the decision to hold rates or make a cut is up in the air. However, recent economic indicators such as non-tradable CPI, employment growth, and wage inflation point to a potential hold in August.
Analysts at ING suggest that a rate cut by the Fed in September could push the RBNZ to make a 50bp cut in October. Despite the uncertainty, the outlook for NZD/USD remains bullish in the short term. With the possibility of a rate cut by the Fed and stabilization of risk sentiment, a move above 0.61 is within reach.
In summary, the decision by the Reserve Bank of New Zealand on interest rates could have a significant impact on the NZD/USD currency pair. Investors should keep a close eye on economic indicators and central bank decisions to make informed decisions about their investments.