Bank of America cuts RBNZ rate forecast to 1.75%, expects NZD weakness - Investing.com

BofA cuts NZD/USD forecast, sees AUD/NZD rising on rate differentials - Investing.com

BofA refreshes its AUD/NZD forecast - Investing.com

RBNZ preview: A closer call than markets expect

The desk anticipates a potential interest rate hike at the Reserve Bank of New Zealand's upcoming meeting on May 27, although it acknowledges that the RBNZ's tendency towards dovishness may lead to a 'hawkish hold'. Per the full note from ing-think, there is an underappreciated risk of tightening, with expectations suggesting the first of two hikes could occur as early as July. With external factors likely to drive NZD movements, market participants should remain vigilant. Supporting arguments for a hike include evolving inflation data suggesting underlying pressures and a global economic recovery, particularly as the RBNZ has previously suggested readiness to act if necessary. As such, new projections could indicate a tightening cycle starting in Q3, reflecting a shift in the central bank's stance. While the desk leans towards anticipating these hikes, it implicitly dismisses the counter viewpoint that favors a prolonged period of policy accommodation—arguing instead that inflationary pressures are likely to prompt action sooner rather than later.

NZD/USD Forecast: Analysts Predict Sustained Weakness From RBNZ's Dovish Stance - Bitcoin World