On the calendar, the RBNZ will be holding its monetary policy meeting this week.

No changes are expected as the RBNZ is forecast to remain on the sidelines.

In the UK, the preliminary second quarter GDP will be coming out this week with expectations riding high that the UK’s economy rebounded following sluggish growth in the first quarter.

RBNZ to hold rates steady

The Reserve Bank of New Zealand will be holding its monetary policy meeting this week.

According to the economists polled, the central bank of New Zealand is expected to leave monetary policy unchanged.

This would mark a steady pace of interest rates which remain at 1.75%.

The RBNZ has kept interest rates unchanged since November 2016.

Recent economic data continues to show that the central bank will have to remain on the sidelines until further proof of economic growth being entrenched.

Last week, the quarterly employment report from New Zealand showed that while the labor market was gaining momentum, wage growth was tepid.

While most of the variables of the labor market were in line with the RBNZ’s forecast, wage growth missed estimates.

Still, a modest pickup in wage growth was seen.

The RBNZ is unlikely to make any changes to its statement this week as inflation continues to remain sluggish.

The markets are currently expecting the RBNZ to leave interest rates steady at least until the middle of 2019.