The New Zealand Institute of Economic Research (NZIER) runs a ‘shadow board’ of analysts.
The Shadow Board is independent of the RBNZ and does not represent what the RBNZ is going to do but rather what their view is that the RBNZ should do. That is, the Shadows do not preview what they think will happen, but what they think should happen.
From their recommendation for this week’s policy meeting:
- The NZIER Monetary Policy Shadow Board recommends that the Reserve Bank of New Zealand (RBNZ) should cut the OCR in the upcoming May Monetary Policy Statement, with almost half of the Shadow Board members recommending a 25 basis-point OCR cut.
- One member recommended a 50 basis-point cut, believing that the New Zealand economy needs more stimulus.
- In contrast, several members recommended that the RBNZ keep the OCR unchanged in May.
- The recent increase in inflation and inflation expectations and heightened global uncertainties were highlighted as factors which warranted the need for caution by the RBNZ.
2pm New Zealand time on Wednesday is
- 0200 GMT
- 2200 US Eastern time on Tuesday
This article was written by Eamonn Sheridan at www.forexlive.com.
