06:26 AM EDT, 10/07/2024 (MT Newswires) -- The Reserve Bank of New Zealand will likely step up the pace of rate cuts by delivering a 50bps rate cut at this week's policy meeting and again at the following policy meeting in November, according to Mitsubishi UFG.

The central bank will provide an update with a policy statement at 9 p.m. ET on Tuesday, noted MUFG.

Like the Bank of England, the RBNZ started its easing cycle in August when it cut rates by 25bps. The RBNZ will have to deliver a dovish policy in this week to meet financial market expectations for more aggressive easing, stated MUFG.

The New Zealand dollar could attempt to stage a temporary relief rally if is there any disappointment over the scale of easing, added the bank.