Dominick Stephens, chief economist at Westpac, expects the RBNZ to leave the OCR on hold next week and suggests that it will probably reiterate that it has an easing bias.

“The RBNZ will express concern about deepening risks to the global economy. The increasing likelihood that other central banks will reduce interest rates will also be mentioned. The domestic outlook has not changed much, but these global risks increase the likelihood that the RBNZ will cut again. We are now forecasting an August OCR cut. The consequent drop in mortgage rates gives us even more reason to expect an upturn in the housing market and the New Zealand economy over the year ahead.”