Goldman Sachs: RBNZ's Policy Stance More Dovish Than Anticipated

Deep News
Feb 18

According to a report from Goldman Sachs economists, the Reserve Bank of New Zealand's monetary policy statement, particularly its forward guidance, was more dovish than expected. Although markets had priced in a 40-basis-point tightening of the Official Cash Rate by 2026, the central bank indicated that the policy environment is likely to remain accommodative for some time. The economists noted that the RBNZ expressed confidence that inflation will decline to the mid-point of the 1-3% target range over the next 12 months, while also cautioning about recent above-forecast headline inflation figures. Given the significant amount of spare capacity in the economy, Goldman Sachs anticipates that a robust economic recovery will be accompanied by moderate inflationary pressures. They stated, "We view the RBNZ's communication today as consistent with a first rate hike being delayed until the fourth quarter of 2026."

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10