RBNZ likely to pause in cutting rates

The RBNZ has cut rates three times in a row and it is likely to take some time to gauge the impact of those earlier easings, particularly when average underlying inflation has broadly stabilized with one RBNZ measure picking up slightly. 

"The RBNZ is expected to keep rates steady at 2.75% on 29 October and resume cutting rates on 10 December, when the bank next updates its economic outlook", says Barclays. 

Given that the market is pricing in a 16% probability of a 25bp rate cut, reaction in the NZD will likely be muted if RBNZ holds.