RBNZ Seen Holding Rates Steady While Retaining Threat to Hike.

The Reserve Bank of New Zealand (RBNZ) is expected to keep interest rates steady at 5.5% this week, according to economists. However, the RBNZ is likely to retain the threat of a rate hike due to difficulties in controlling inflation. The inflation rate in New Zealand remains high at 4.7%, well above the target band of 1-3%. While some economists predict a rate increase, others believe that the RBNZ will wait for more evidence before taking action. The RBNZ will release its rate decision and an updated forward track for the Official Cash Rate (OCR) on Wednesday. [Extracted from the article]

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