NZ stocks: Reserve Bank statement highlight of short week

The Reserve Bank's monetary policy statement on Thursday is one focus in a short business week.

A preview from investment bank and sharebroker First NZ Capital predicted the bank would cut the official cash rate by 25 basis points to 5.25 per cent.

That would follow on from a 25 basis point cut in late April that was the first official cash rate move in nearly a year - and the first since the appointment of Alan Bollard as Reserve Bank Governor.

First NZ Capital said: "Six weeks later, the economic environment remains similar."

In other words: inflation was looking weak and growth was slowing.

"Some are calling for a 50 basis point easing, but we believe that 25 basis points is more likely."

The firm said a soft landing for the economy was "still the most likely outcome" and "there is no real need to accelerate the easing process".

"We believe that the tone of the monetary policy statement will be very similar to the statement made in April."

Also on this week's business agenda: another stage in the remaking of the New Zealand stock exchange or NZX, as it is now named.

The exchange says it expects to register its prospectus tomorrow and will list on its own main board on Wednesday.

A roadshow for sharebrokers will roll through Auckland and Wellington on Wednesday and Christchurch and Dunedin on Thursday.

The exchange plans to raise $15 million from a rights issue and a public offering.