25 Jul 2013
Flash: RBNZ policy statement was hawkish – Societe Generale
FXstreet.com (London) - Kit Juckes, Global Head of Strategy at Societe Generale commented on the RBNZ’s statement overnight.
Key Quotes:
“RBNZ... policy statement this morning forecasts rushing to revise rate calls up: “Growth is picking up and although uneven, is becoming more widespread across sectors”
““Consumption is increasing...rapid house price inflation persists...inflation is expected to trend upwards...Although removal of monetary stimulus will likely be needed in the future, we expect to keep the OCR unchanged through the end of the year.” “
“The RBNZ will be the first of the G10 central banks to hike rates, early in 2014. The currency is already strong and AUD/NZD in particular reflects the divergence between the two economies”.
“However, if long EUR/AUD is an interesting trade to position for more bad news from China, then long NZD/JPY is the best FX position to look for yen weakness from here”.
Key Quotes:
“RBNZ... policy statement this morning forecasts rushing to revise rate calls up: “Growth is picking up and although uneven, is becoming more widespread across sectors”
““Consumption is increasing...rapid house price inflation persists...inflation is expected to trend upwards...Although removal of monetary stimulus will likely be needed in the future, we expect to keep the OCR unchanged through the end of the year.” “
“The RBNZ will be the first of the G10 central banks to hike rates, early in 2014. The currency is already strong and AUD/NZD in particular reflects the divergence between the two economies”.
“However, if long EUR/AUD is an interesting trade to position for more bad news from China, then long NZD/JPY is the best FX position to look for yen weakness from here”.