The key question isn't whether the RBNZ is going to cut, but whether their stimulus will be enough to assuage concerns about the persistent softness in inflation, according to economists at Westpac Bank.
Three weeks ago, the central bank held a special economic assessment update in which it said "further policy easing will be required" for consumer price inflation (CPI) to hit its 1-3 percent target range. An appreciating currency has hindered price increases, with the kiwi dollar around 6 percent higher than the central bank's expectations, Westpac noted.
Year-to-date, the kiwi is more than 5 percent higher against the greenback while CPI has been unchanged at 0.4 percent on-year since January. In fact, annual CPI readings have registered gains of fewer than 1 percent since the December 2014 quarter.
So, what's stopping the RBNZ from throwing the kitchen sink at markets on Thursday?
"The strong housing market is one of the main factors preventing a more aggressive move from the RBNZ," explained Kathy Lien, managing director of FX strategy at BK Asset Management.
Like Australia, New Zealand's residential property market has been on a tear. The national median house price breached the NZD$500,000 ($360,000) barrier, an 11.1 percent annual increase, the Real Estate Institute of New Zealand (REINZ) revealed in a July report.
"Although the onset of winter means that June is generally a quieter month for the real estate market, there has been no let-up in the rate of price increases across the country, with five regions recording new record median prices," REINZ spokesperson Bryan Thomson said. New Zealand is located in the Southern Hemisphere, so winter typically sets in from June.