KT Macro: RBNZ's rhetoric appears to be dovish

On July 10, Jinshi data reported that Abhijit Surya, an economist at Capital Economics, said that although the official cash Intrerest Rate of the Reserve Bank of New Zealand remained unchanged at 5.50%, the bank’s comments sounded quite dovish. The information issued by the Central Bank gives people more confidence that it will start a loose cycle in November. Surya said that there are some bright spots in the policy statement, indicating that the Reserve Bank of New Zealand is now one step closer to cutting interest rates. It pointed out that the restrictive monetary policy has greatly dropped consumer price inflation, while in May, it only pointed out that the restrictive monetary policy reduced capacity pressure in the New Zealand economy and dropped consumer price inflation. In addition, he also added that the Reserve Bank of New Zealand no longer says that the Intrerest Rate needs to be maintained restrictively for a period of time.