According to reports from Jin Shi Data, Kelly Eckhold, chief economist of Westpac New Zealand, stated that the Reserve Bank of New Zealand may keep interest rates unchanged at next week's policy meeting, but will acknowledge that the economic outlook is improving. The official cash rate is expected to remain at 2.25%, and the Reserve Bank of New Zealand may bring forward the expected timing of the first rate hike to December.
Eckhold added that due to ongoing excess capacity, tightening financial conditions, and declining food and fuel price inflation, the Reserve Bank of New Zealand's inflation expectations will trend towards 2%, thereby diminishing the necessity for the central bank to quickly resume rate hikes.