28 Jan 2016
RBNZ: Further policy easing may be required - Rabobank
FXStreet (Delhi) - Michael Every, Head of Financial Markets Research at Rabobank, suggests that the RBNZ was a completely different central bank at their meeting to the one that set off boldly rate hiking back in 2014.
Key Quotes
“It noted “Some further policy easing may be required over the coming year” to keep inflation on track (which, as in the US, it currently isn’t). NZD dipped to 0.6430 post-meeting but given we are still well above the September 2014 low of 0.6259, and rates are still only back where they were before the Reserve Bank decided it could hike where no-one else dared, many will be thinking ‘Get on with it!’”
Key Quotes
“It noted “Some further policy easing may be required over the coming year” to keep inflation on track (which, as in the US, it currently isn’t). NZD dipped to 0.6430 post-meeting but given we are still well above the September 2014 low of 0.6259, and rates are still only back where they were before the Reserve Bank decided it could hike where no-one else dared, many will be thinking ‘Get on with it!’”