8 Jun 2015
Expect a dovish tone from the RBNZ this week – TDS
FXStreet (Edinburgh) - Strategist at TD Securities see the RBNZ striking a dovish tone at its meeting this week, although it could refrain from cutting rates.
Key Quotes
“While many are of the view that the RBNZ is set to cut the OCR from 3.50% to 3.25%, we disagree”.
“Rather, we expect a dovish tone and a clear easing bias via a downwardly sloping bank bill curve, hence expect bonds to outperform (vs dollar bloc peers) and the NZD to underperform, once the initial market shock of not easing has passed”.
Key Quotes
“While many are of the view that the RBNZ is set to cut the OCR from 3.50% to 3.25%, we disagree”.
“Rather, we expect a dovish tone and a clear easing bias via a downwardly sloping bank bill curve, hence expect bonds to outperform (vs dollar bloc peers) and the NZD to underperform, once the initial market shock of not easing has passed”.