Tough spot: Security personnel at the entrance to the RBNZ in Wellington. The economy is showing signs of entering a third recession in less than two years and inflation has slowed more than the central bank expected. — Reuters
WELLINGTON: New Zealand’s central bank faces a crunch policy decision this week, with economists and investors unsure whether it will start cutting interest rates or wait for further evidence that inflation is returning to target.
While 12 of 21 economists surveyed by Bloomberg expected the Reserve Bank of New Zealand (RBNZ) to keep the official cash rate at 5.5% tomorrow in Wellington, nine predicted it would embark on an easing cycle.
