11 Jan 2016
NZD: RBNZ to cut again this year - Westpac
FXStreet (Delhi) – Imre Speizer, Senior Market Strategist at Westpac, expects the RBNZ to cut again this year, to 2.25% in June and again to 2.00% on September.
Key Quotes
“We expect inflation to continue to undershoot the RBNZ’s 2.0% midpoint target. Market pricing for the RBNZ has fallen during the past few weeks with the global risk aversion, implying a terminal OCR of 2.35%. In other words, the market has assigned a 40% probability the RBNZ will need to be cut again this year.”
Key Quotes
“We expect inflation to continue to undershoot the RBNZ’s 2.0% midpoint target. Market pricing for the RBNZ has fallen during the past few weeks with the global risk aversion, implying a terminal OCR of 2.35%. In other words, the market has assigned a 40% probability the RBNZ will need to be cut again this year.”