The week ahead will be slightly quiet as the RBNZ and the RBA hold their respective monetary policy meetings.

No changes to the base rates are expected from both the central banks. Focus will be on the RBNZ’s monetary policy statement which comes after better than expected unemployment data.

The central bank could also be clarifying its stand on the recent plans by the new government to overhaul the RBNZ’s mandate.

Elsewhere, the inflation data from China is due this week while in the UK the manufacturing and industrial production figures will be coming out.

RBA and RBNZ meetings to be a non-event

The central bank meetings continue over the quiet week as both the RBA and the RBNZ will be holding their respective monetary policy meetings over the week.

No changes are expected as both the central banks are widely forecast to keep interest rates unchanged at this week’s meeting. However, given the status quo that will be maintained, markets will be looking to the respective forward guidance from both the central banks.

The RBNZ for its part is expected to remain neutral especially after the recent labor market data showed an upbeat print. Ahead of the RBNZ meeting, the quarterly inflation expectations data will be published which could influence the statement from the RBNZ.

The RBA is expected to maintain a dovish tone this week as economic data continues to remain sluggish. Inflation data wasn’t very encouraging and last week’s retail sales data showed a flat print for the month. Combined, the outcome is expected to cloud the RBA’s outlook on interest rates.