Standard Chartered: RBNZ expected to cut rates by 50 basis points, unlikely to see surprises

ChainCatcher news, according to Jinshi report, Standard Chartered Bank analysis pointed out that the Reserve Bank of New Zealand may cut interest rates by 50 basis points at the meeting on February 19, and surprises are unlikely to occur. The Reserve Bank has communicated well on this measure, and we believe that the likelihood of any unexpected developments in any direction is low. On the risk side, we believe that if economic data remains weak, the RBNZ may be more proactive in easing monetary policy in the second quarter (relative to a single 25 basis point rate cut) in order to bring interest rates back to neutrality (2.5-3.5%).