11 Jun 2015
RBNZ cuts rates, RBA dovish – Rabobank
FXStreet (Barcelona) - The Rabobank Team comments on the recent central bank action in Australia and New Zealand.
Key Quotes
“This morning the RBNZ cut rates 25bp to 3.25%. That was the first cut since March 2011: and it was also flagged as only the first step in reversing the 75bp (now 50bp) of hikes that the bank had put in place over the course of 2014.”
“Naturally, NZD tumbled afterwards from 0.72 to 0.7045, but one can’t really describe the RBNZ move as a ‘shock’: New Zealand may be a long way from almost everywhere but it still isn’t far enough from the new normal.”
“Yesterday also saw RBA Governor Stevens give a speech in which he made it clear that AUD needs to be lower and there was room for more rate cuts: that was no shock either for the same underlying reasons, the difference being AUD didn’t go down because the RBA didn’t actually act.”
Key Quotes
“This morning the RBNZ cut rates 25bp to 3.25%. That was the first cut since March 2011: and it was also flagged as only the first step in reversing the 75bp (now 50bp) of hikes that the bank had put in place over the course of 2014.”
“Naturally, NZD tumbled afterwards from 0.72 to 0.7045, but one can’t really describe the RBNZ move as a ‘shock’: New Zealand may be a long way from almost everywhere but it still isn’t far enough from the new normal.”
“Yesterday also saw RBA Governor Stevens give a speech in which he made it clear that AUD needs to be lower and there was room for more rate cuts: that was no shock either for the same underlying reasons, the difference being AUD didn’t go down because the RBA didn’t actually act.”