23 Jul 2015
RBNZ to cut by 25bp again in Sept, Oct - HSBC
FXStreet (Bali) - HSBC anticipates an additional two further cuts by the RBNZ, most likely at the next two meetings, to get the rate back to 2.50%.
Key Quotes
"As expected, the RBNZ cut its cash rate today by 25bps, to 3.00%. Inflation remains low and the growth outlook has weakened lately, largely as a result of further falls in dairy prices."
"Despite an economy that has performed well over the past couple of years, domestic inflation pressures have fallen, with last week's Q2 CPI showing non-tradable inflation at a 15-year low."
"Although we do not expect a sharp slowdown in growth, we do believe the RBNZ faces a significant challenge in getting inflation up to 2% on a sustained basis. The RBNZ today signalled that 'some further easing seems likely'."
Key Quotes
"As expected, the RBNZ cut its cash rate today by 25bps, to 3.00%. Inflation remains low and the growth outlook has weakened lately, largely as a result of further falls in dairy prices."
"Despite an economy that has performed well over the past couple of years, domestic inflation pressures have fallen, with last week's Q2 CPI showing non-tradable inflation at a 15-year low."
"Although we do not expect a sharp slowdown in growth, we do believe the RBNZ faces a significant challenge in getting inflation up to 2% on a sustained basis. The RBNZ today signalled that 'some further easing seems likely'."