8 Jun 2015
Expect the RBNZ to cut rates this week – ANZ
FXStreet (Barcelona) - Economists at ANZ expect the RBNZ to cut rates by 25bps in its policy meeting this week.
Key Quotes
“With the market still sitting on the fence, we expect short-term rates to fall as the RBNZ cuts the OCR this week and the prospect of another cut sets in. While the NZD has fallen of late, this is based on the notion of OCR cuts being delivered, with a broader policy toolkit helping to lessen the importance of the housing market in OCR deliberations.”
“Although longer-term global interest rates are in a “bearish corrective phase”, we expect subsequent moves to be gradual considering the slow pace of policy normalisation and impact of central bank support, with scope for local rates to narrow in relation to global peers.”
“We expect the RBNZ to deliver a 25bps cut on Thursday. One cut is tinkering so the market will immediately latch onto prospects for another. As such, local short-end rates are expected to rally and the curve to steepen.”
Key Quotes
“With the market still sitting on the fence, we expect short-term rates to fall as the RBNZ cuts the OCR this week and the prospect of another cut sets in. While the NZD has fallen of late, this is based on the notion of OCR cuts being delivered, with a broader policy toolkit helping to lessen the importance of the housing market in OCR deliberations.”
“Although longer-term global interest rates are in a “bearish corrective phase”, we expect subsequent moves to be gradual considering the slow pace of policy normalisation and impact of central bank support, with scope for local rates to narrow in relation to global peers.”
“We expect the RBNZ to deliver a 25bps cut on Thursday. One cut is tinkering so the market will immediately latch onto prospects for another. As such, local short-end rates are expected to rally and the curve to steepen.”