RBNZ wants to be late to the global rate hiking party - ANZ
|Analysts at ANZ note that the RBNZ continues to signal it wants to be late to the global rate hiking party, or a no-show altogether.
Key Quotes
“That is keeping the short end anchored and driving a meaningful outperformance of the long end, especially with US yields grinding higher. While local long-end yields are now looking fully priced, and so the hurdle for further outperformance is higher, if the RBNZ decides to cut, we see no reason why yields could not fall to historical lows.”
“The NZD is being impacted by similar themes as well as a softer outlook for the terms of trade. Together with tightening global liquidity, we expect the NZD/USD to reach 0.61 by early next year.”
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