RBNZ expected cut again in Q4 - HSBC

FXStreet (Guatemala) - Analysts at HSBC explained that, as they expected, given the risks to growth and generally low inflation, the RBNZ continues to signal that 'some further easing seems likely' but that 'this will depend on the emerging flow of economic data'.

Key Quotes:

"The central bank's own published forecasts for the 90-day bank bill rate imply that the cash rate should settle at around 2.50% during the first half of 2016. The question is: how quickly is it likely to get there?"

There are still two RBNZ meetings to come this year and Q2 GDP and Q3 CPI are both scheduled to be published before the RBNZ meets again in late October. Watching these data will be critical to determining the timing of the next move. We expect another 25bp cut in Q4."