27 Oct 2015
NZD: RBNZ to take dovish stance and leave rates unchanged - BNZ
FXStreet (Delhi) - Craig Ebert, Senior Economist at BNZ, suggests that we wouldn’t be surprised, nor complain, if the Reserve Bank took a pause at Thursday’s OCR Review.
Key Quotes
“While we can see a scenario for the Bank to keep cutting (think drought, a nasty correction in property prices, global dislocations), we don’t see it as a base case necessity right now.”
“There is every chance the RBNZ will this week come across more dovish than the market is currently pricing for. The latter, to wit, infers only a half-chance of a 25 basis point cut at the December MPS, and not a full one until March next year. For the meantime – and as Governor Wheeler pointed out in his 28 September speech – much still depends on the data.”
Key Quotes
“While we can see a scenario for the Bank to keep cutting (think drought, a nasty correction in property prices, global dislocations), we don’t see it as a base case necessity right now.”
“There is every chance the RBNZ will this week come across more dovish than the market is currently pricing for. The latter, to wit, infers only a half-chance of a 25 basis point cut at the December MPS, and not a full one until March next year. For the meantime – and as Governor Wheeler pointed out in his 28 September speech – much still depends on the data.”