4 Dec 2015
RBNZ to cut rates by 25 bp next week – TDS
FXStreet (Edinburgh) - In the view of strategists at TD Securities, the RBNZ could lower its benchmark rate by 25 bp at its meeting next week.
Key Quotes
“We expect the RBNZ to front-run the U.S. FOMC and cut the cash rate by 25bp to 2.50% and signal more is possible for 2016”.
“If the RBNZ is serious about inflation targeting via a lower TWI it needs the cut and to lower its bank bill profile for 2016”.
“Inflation is lower for longer as it is. While there has been a run of solid activity data, that has been about volumes, not prices, and we’ve yet to see it develop into sustained inflationary pressure”.
Key Quotes
“We expect the RBNZ to front-run the U.S. FOMC and cut the cash rate by 25bp to 2.50% and signal more is possible for 2016”.
“If the RBNZ is serious about inflation targeting via a lower TWI it needs the cut and to lower its bank bill profile for 2016”.
“Inflation is lower for longer as it is. While there has been a run of solid activity data, that has been about volumes, not prices, and we’ve yet to see it develop into sustained inflationary pressure”.