11 Mar 2015
RBNZ to keep rates unchanged until 2016 - Nomura
FXStreet (Bali) - Charles St-Arnaud, Economist at Nomura, notes that a robust domestic economy and weaker NZD means little change to the RBNZ policy stance this week.
Key Quotes
"We believe the RBNZ statement will continue to show that it remains confident in its economic outlook, especially in the light of recent domestic data. However, this will probably contrast with its view on the global economy, which is likely to continue to be a source of concern, with the exception of the U.S. economy."
"While oil prices have recovered since the January meeting, the current low level will be viewed as a positive for the economy but also suggests that inflation will remain weak and possibly even moderate further. Our view remains that the RBNZ will keep rates unchanged until 2016."
Key Quotes
"We believe the RBNZ statement will continue to show that it remains confident in its economic outlook, especially in the light of recent domestic data. However, this will probably contrast with its view on the global economy, which is likely to continue to be a source of concern, with the exception of the U.S. economy."
"While oil prices have recovered since the January meeting, the current low level will be viewed as a positive for the economy but also suggests that inflation will remain weak and possibly even moderate further. Our view remains that the RBNZ will keep rates unchanged until 2016."