Forex News RBNZ's rate decision next week "likely to be a lineball call," says Goldman Sachs JBWere senior economist Shamubeel Eaqub; "we are torn on whether the RBNZ will ease or not. There is no question in our mind that a recessionary economy requires neutralisation of monetary policy, but we are not sure the RBNZ shares the same policy reaction response in light of accelerating inflation." Own expectation is for RBNZ to hold and deliver 1st easing at Sept. 11 meeting. Says without imminent easing in monetary policy, current economic downturn "is apt to become a deep and protracted recession in our view." Only 4 of 14 analysts polled by Dow Jones expect 25bp cut next week, though market pricing in around 55% chance of easing.
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