FXstreet.com (Barcelona) - According to Strategist Doug Steel at BNZ, “Certainly we do not think a cut at this week’s RBNZ meeting is a serious option, though the market prices close to a 15% chance.”
In an otherwise light data week locally, Thursday’s meeting will be this week’s local focus. As the first under Governor Wheeler it is bound to attract additional attention. The statement will likely be short and to the point. Still, it will be used to gauge how the Bank is currently weighing up risks. i.e. the still uncertain global backdrop, firm NZD, and slower domestic growth and inflation indicators, against the likes of reheating house prices and associated emerging credit growth.
“With NZ swap yields having dipped toward lows we believe there are attractive hedging opportunities, with those who have current capacity. Having said that, we believe yields will remain within ranges until late next year.” Steel suggests.
In an otherwise light data week locally, Thursday’s meeting will be this week’s local focus. As the first under Governor Wheeler it is bound to attract additional attention. The statement will likely be short and to the point. Still, it will be used to gauge how the Bank is currently weighing up risks. i.e. the still uncertain global backdrop, firm NZD, and slower domestic growth and inflation indicators, against the likes of reheating house prices and associated emerging credit growth.
“With NZ swap yields having dipped toward lows we believe there are attractive hedging opportunities, with those who have current capacity. Having said that, we believe yields will remain within ranges until late next year.” Steel suggests.
