RBNZ: Risk of rate cut is greater than an RBA move - BBH

Research Team at BBH, suggests that the risk of an RBNZ rate cut is seen as somewhat greater than an RBA move. 

Key Quotes

“The Bloomberg survey of 15 analysts is nearly evenly divided.  However, of the six banks based in Australia and New Zealand that participated in the survey, only one expects the RBNZ to cut rates. 

Disappointing economic data, soft milk prices, and a rebounding currency make us inclined to anticipate a cut that would bring the cash rate to 1.75%.  Unlike the RBA that cut rates last month, the RBNZ has not reduced rates since January. If it does not move now, many participants may consider doubling up for a move in August when it meets again.”