RBNZ Rate Hike Expected as Australia's Q2 GDP Looms

The Reserve Bank of New Zealand (RBNZ) is set to make its rate decision today, with most economists expecting a hike in interest rates. The bank's decision comes as Australian GDP data for April, May, and June is also released, but the focus remains on the RBNZ.

According to a poll of economists, 90% expect the RBNZ to raise its Official Cash Rate (OCR) today, with some predicting a hike to 2.75%. However, not all agree, and the decision will be closely watched for any signs of inflation or economic growth.

Australia's Q2 GDP is expected to print in the range of 0.2-0.4% quarterly, but the real story lies beneath the headline number. Net exports, which were a major drag on Q1 growth, are expected to have contributed positively this quarter, but private non-farm inventories are tipped to subtract around 0.3 percentage points.