Analysts at TD Securities expect that in the RBNZ's Monetary Policy Statement, downgrades to the Bank's GDP and potentially CPI forecasts are likely to pave the way for the RBNZ to cut the cash rate to a record low 1.25%.

“This is in line with 18/21 analysts in Bloomberg, with 3 forecasters looking for rates to remain unchanged. The deteriorating trade outlook means the Bank is unlikely to shut the door on further easing, instead offering a contingent easing bias.”