Reserve Bank of New Zealand to cut its official cash rate by 25bps

The Reserve Bank of New Zealand is expected to cut its official cash rate by 25bps on Wednesday but such expectations are hardly unanimous. 

Governor Wheeler poured cold water on any minority thesis that the central bank would let housing excesses influence monetary policy and summed up what he's focused upon when he recently noted: "The possibility of us raising interest rates at this point to lean against house-price pressures in Auckland is probably pretty negligible. The last thing we would want to do is drive the exchange rate up for example. With the economy going through a dairy price adjustment, and growth probably slowing in the first half of this year, the prospect of raising interest rates in the short term is not something we would consider feasible."