Today’s slam-dunk of monetary events will occur later today when the Reserve Bank of New Zealand, RBNZ, is expected to tighten its interest rate policy. It is the key event in a relatively quiet week for the Group of 10 economies. However, the biggest event risk may be that Governor Graeme Wheeler and his team does nothing at all. The RBNZ has held the Overnight Cash Rate at +2.5% for three years, and in that time, Kiwi monetary policy has become very expansionary. Business confidence is running at a two-decade high, while consumer confidence is humming along just under a decade high, construction is booming, and property prices are still rising.
