A decision to raise interest rates would be contentious, given the overall fragile state of the economy and the fact that falling oil prices are easing pressure on the inflation outlook.
RBNZ Governor Anna Breman appears keen to flex her hawkish muscles though, with a message centered on elevated inflation, the need to maintain bank credibility and to drive prices lower.
Her comments on the longer-term horizon will be the main talking point. Breman might want to keep the door open to further hikes to show she's serious about getting inflation back on target.
Southeast Asia CPIs
The Philippines and Thailand are scheduled to release inflation data for June during the week. Inflation is likely to have cooled, but remained elevated in both countries as energy prices declined.
