Standard Chartered Bank: The Reserve Bank of New Zealand is expected to cut interest rates by 50 basis points, and surprises are unlikely

ChainCatcher news, according to Jinshi reports, Standard Chartered Bank analysis indicates that the Reserve Bank of New Zealand may cut interest rates by 50 basis points at the meeting on February 19, and an unexpected outcome is unlikely.

The central bank has communicated well regarding this move, and we believe the likelihood of any surprises in either direction is very low. On the risk side, we think that if economic data remains sluggish, the Reserve Bank of New Zealand may adopt a more aggressive approach to easing monetary policy in the second quarter (compared to a single rate cut of 25 basis points) in order to restore interest rates to neutral (2.5-3.5%) more quickly.