New Zealand - Pausing for breath

Although the Reserve Bank of New Zealand (RBNZ) will probably leave interest rates on hold at 2.75% at the policy meeting on Thursday 29th October, this will just be a pause in the loosening cycle rather than the end. Our forecast that rates will fall to 2.0% next year suggests that the New Zealand dollar will soon weaken again, perhaps all the way to US$0.55 from US$0.68 now.  

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