UBS: The Reserve Bank of New Zealand is expected to keep interest rates unchanged next week

UBS economist Nic Guesnon stated that the Reserve Bank of New Zealand is expected to maintain the official cash rate at 5.50% unchanged at next week's policy meeting, but this seems to be a very close decision with a rate cut. He said that the Reserve Bank of New Zealand made a significant shift towards dovishness in its July policy statement, but traders and economists still do not know whether they considered cutting rates at that meeting. He added that the market expects a 70% chance of a 25 basis point rate cut in August, but preliminary surveys of economists show that the market generally tends to keep the official cash rate unchanged.