15 Jan 2014
Flash: RBNZ rate hike coming soon - HSBC
FXstreet.com (Bali) - A rate hike is expected soon by the RBNZ, notes HSBC.
Key Quotes
"At its latest meeting on December 2013, the RBNZ noted that they 'will increase the OCR as needed’ in order to meet the 2 % inflation target. According to their profile for the rate outlook, rate rises are expected to begin from Q2 2014."
"However, in our view, the RBNZ may need to raise rates as soon as Q1 2014, due to greater cost-pressure than the RBNZ is currently factoring in."
"In either case, the RBNZ would be the first central bank in the G10 space to start raising rates. This should grant support to the currency in 2014 and we forecast NZD-USD at 0.87 by year-end."
Key Quotes
"At its latest meeting on December 2013, the RBNZ noted that they 'will increase the OCR as needed’ in order to meet the 2 % inflation target. According to their profile for the rate outlook, rate rises are expected to begin from Q2 2014."
"However, in our view, the RBNZ may need to raise rates as soon as Q1 2014, due to greater cost-pressure than the RBNZ is currently factoring in."
"In either case, the RBNZ would be the first central bank in the G10 space to start raising rates. This should grant support to the currency in 2014 and we forecast NZD-USD at 0.87 by year-end."