German bank: Expects the Reserve Bank of New Zealand's position at tomorrow's meeting to significantly shift to hawkish.

A Deutsche Bank analyst stated that it is expected that the Reserve Bank of New Zealand will cut interest rates by 25 basis points tomorrow. Since this result is already anticipated by the market, it is unlikely to have a significant impact on the New Zealand dollar. However, given the recent signs of rising inflation and improvements in the labor market and economic confidence, it is expected that the Reserve Bank of New Zealand's stance at this meeting will significantly shift towards a hawkish position even though its stance was quite dovish at the previous meeting in early July. The market is currently digesting the expectation of yet another rate cut, and most economists believe that by the middle of next year, this rate-cutting cycle will conclude with interest rates reaching 2.75%. However, the bank's view is that 3% will be the end point of this rate-cutting cycle. If the Reserve Bank of New Zealand releases a signal tomorrow that aligns with their view, it may provide some support for the New Zealand dollar.