BNZ maintain call for November RBNZ rate cut

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    The Bank of New Zealand morning commentary today takes note of the NZD after the RBNZ decision and statement on policy:

    • The NZD/USD did not show a significant response, settling into a range for much of yesterday
    • at 0.7300 currently & NZ TWI has also traded lower
    • This will be welcomed by the RBNZ that yesterday reiterated that; "A decline in the exchange rate is needed"

    More from BNZ:

    • RBNZ confirmed its easing bias
    • RBNZ downplayed recent positive domestic developments & global backdrop still seen as uncertain (outlook for global growth, commodity prices and the political environment)
    • Inflation is seen as being held down by negative tradables inflation but the RBNZ expects a rise from the December quarter ... but the RBNZ still sees negative risks to inflation

    BNZ says its " comfortable with our core view for an RBNZ rate cut in November, with a further cut in February being a line ball call"



    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



    This article appears in: Investing , Forex


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