Economist's view: There is uncertainty about whether the Reserve Bank of New Zealand will cut interest rates this week

The agency said that the Reserve Bank of New Zealand will have a key decision this week, and economists and investors are unsure whether the bank will start cutting interest rates or wait for further evidence that inflation is returning to the target. Of the 21 economists surveyed, 12 expect the Reserve Bank of New Zealand to keep interest rates unchanged at 5.5%, but 9 predict that it will start a rate cut cycle. Nick Tuffley, chief economist at ASB Bank in Auckland, said that the risk of excessive monetary policy tightening has become a reality, and the time has come for the Reserve Bank of New Zealand to cut interest rates, but much depends on how much its forecasts have changed. In less than two years, New Zealand's economy may show signs of a third recession, and the degree of slowing inflation has exceeded the central bank's expectations. But some domestic prices are still high, and if interest rate cuts are initiated now, it will be one year earlier than the signal the central bank just sent three months ago. This will be a huge change for the Reserve Bank of New Zealand. (Jinshi)