4 May 2015
The RBNZ delivered a more clearly dovish statement - RBS
FXStreet (Bali) - The RBNZ delivered a more clearly dovish statement following their April meeting, notes Brian Daingerfield, FX Trading Strategist at RBS.
Key Quotes
"The RBNZ delivered a more clearly dovish statement following their April meeting, suggesting that rate hikes are not currently being considered. Importantly, however, the statement does not suggest that rate cuts are being considered at this time either, instead saying that it would be appropriate “if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target.”
"First quarter employment statistics are released this week and with a direct reference to wage inflation as one of the factors the RBNZ is watching, the quarterly average hourly earnings should be a focus. The y/y rate of average hourly earnings, at 3.0% y/y as of 4Q 2014, is just below the average rate since 1990 (3.2%) but well below the 5-6% y/y levels seen in 2005-2008."
Key Quotes
"The RBNZ delivered a more clearly dovish statement following their April meeting, suggesting that rate hikes are not currently being considered. Importantly, however, the statement does not suggest that rate cuts are being considered at this time either, instead saying that it would be appropriate “if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target.”
"First quarter employment statistics are released this week and with a direct reference to wage inflation as one of the factors the RBNZ is watching, the quarterly average hourly earnings should be a focus. The y/y rate of average hourly earnings, at 3.0% y/y as of 4Q 2014, is just below the average rate since 1990 (3.2%) but well below the 5-6% y/y levels seen in 2005-2008."