On Wednesday, August 14th at 10:00, the Reserve Bank of New Zealand will announce its interest rate decision. Economists from ANZ Bank predict that the Reserve Bank of New Zealand will maintain the 5.5% interest rate unchanged this time. However, the Federal Reserve may signal a rate cut later this year.

Recent data shows that New Zealand's economy is slowing down and significant progress has been made in combating inflation.

Sharon Zollner, Chief Economist of ANZ Bank, said, "The data since May, especially since the monetary policy assessment in July, indicate a significant slowdown in the economy and solid progress in anti inflation

These indicators indicate that the Reserve Bank of New Zealand may cut interest rates earlier than expected, possibly as early as November.

Although there are clear signs of economic weakness, Zollner pointed out the lack of a clear trigger for immediate interest rate cuts.

She said, "We certainly do not rule out the possibility of a rate cut next week, as the risk clearly tends to be that the degree of economic weakness exceeds the necessary level to curb inflation. However, there is no conclusive evidence in the top-level data

Zollner emphasized that further evidence is needed before making substantial changes to interest rates.

She said, "The Monetary Policy Committee will come to the conclusion that waiting for more evidence about the economic performance is reasonable and the cost is relatively low because the monetary environment has significantly relaxed

The first interest rate cut is expected to take place in November, and if the economic situation continues to deteriorate, the Reserve Bank of New Zealand may cut interest rates earlier in October. After next week's resolution, the Reserve Bank of New Zealand will hold interest rate decisions on October 9th and November 27th.

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