New Zealand shadow board sees rates unchanged

New Zealand's shadow board has made their recommendation to hold interest rates at 1.75%, with little surprise to markets. The Reserve Bank of New Zealand (RBNZ) will be making their official rate statement on Thursday.

Key highlights

Businesses remain pessimistic about the New Zealand economy, reflecting lingering uncertainty over the effects of government policy changes, and firms may start to become more cautious about hiring later in the year.

Inflation remains low, and although rising global interest rates will support the tightening bias in New Zealand, there is little urgency to raise interest rates. 

Shadow board members continue to recommend the OCR remain unchanged, although the tightening bias has increased marginally. 

18 of 18 economists on Bloomberg forecast the RBNZ will keep rates unchanged at 1.75%.