RBNZ policy rate not going anywhere for a long time - Westpac
|In view of analysts at Westpac, the Q2 CPI disappointment strengthens the RBNZ’s case for remaining on hold this year and next.
Key Quotes
“Markets are still clinging to the view that the RBNZ will hike by August 2018.”
“Our own view is closer to the RBNZ’s, suggesting little upside to NZ interest rates for maturities up to 3yrs.”
“The rise in AU interest rates relative to NZ’s, plus AU commodity outperformance during the past month, have ignited an impressive rally in AUD/NZD.”
“At 1.08, the cross is not far from model fair value at 1.09. We expect dairy prices to remain stable, so that further gains in iron ore could see the cross reach fair value.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.