RBNZ to cut rate again

The RBNZ is expected to lower its growth forecasts in the accompanying Monetary Policy Statement and foreshadow a further rate cut in its profile for the short-term interest rate. 

"The RBNZ is likely to cut the cash rate 25bp, to 2.75%, which would be the third cut in a row. The RBNZ is unwinding last year's rate hikes, given weaker growth, higher unemployment and persistently below-target underlying inflation", says Barclays. 

The RBNZ will be pleased with the recent decline in the NZD, but look for further weakness.